Getting there. According to FMP, the spacer gear can face either way.
The spacer gear I removed is thicker than the others I have. The one I removed from my P200 has little wear and is thinner as is a spare Stella spacer. I think the thinner spare was the one the PO was running with this clutch.
So I put the clutch back together with some gently used pates that were not hammered. Going to use the thinner spacer gear.
From my reading from various sources, it looks like the clearance between the clutch cog and center has to be between .2-.5mm in order to engage/disengage properly and give enough range of motion. The spacer gear thickness becomes more critical when running a bigger clutch because it can foul the cover. It did measure out within this range.
All of this might not have been the cause of the grabbing. Could have been improper seating of springs, preloading the clutch with overly tight cable adjustment or even short, hard rides in freezing cold weather without much warmup. Clutch was fine in fall weather. I'm also going to change the gear oil and get rid of any debris.
A better clutch may also be a good idea. This bike is no screamer, but has a lot more power than my old stock 150.