KX Guru Racing

Is it possible for the shift shaft to hold up the right side cover? The notch in the cover is hitting the top of the shift shaft no allowing cover to seat flush? I can see the half-moon on the backside of the cover contacting shaft.

I have never seen one that was held up by the shift shaft assuming that it is the correct shaft and its installed correctly.
I have seen them hung up on the water pump shaft... like everyone I have ever done
Try spinning the shaft a little as you are trying to put the cover on.
Work it slow and easy.
Do Not beat it with a hammer

As a experiment, you can remove the shaft and try it.
If it has the same issue, then you know that it is not the shift shaft.

I tried spinning the shaft, you can feel the water pump and the exhaust advancer gears mess. You can see in with a flashlight that the notch on the backside is contacting the top of shift shaft, I did not have time to further investigate yet. I took it into work because we are slow of course, now I have not been able to get back on it. just wondering if anyone had that issue before. I decided to lay engine flat, in doing so I had to remove the gear shifter. I think the shaft slide out of position, also looks like to remove shaft completely I will have to remove clutch and basket

Thanks for the advise I will put the mini sledge away! LOL

Side note will that black corrosion on the underside of case vapor blast off?

It's hard to tell from those pics but I think the shaft is not all the way down..
It looks like it is riding a bit high.
Double check to see if it is all the way in.
And yes, you would have to remove the basket to get the mechanism out.

Vapor blasting can remove a lot depending on how much time you have.
A better option when the cases are really bad is to sand blast them first, then vapor blast.

I had some time in am to look at it. Found the washer on the shaft was dislodged from the proper position.

That can make a difference