Rusty has a misalign rear wheel, it is not centered into the chassis.

The wheel is perfectly straight, swing arm bushings are brand new (it was tilted before rebuilt !)

The drum does not go all the way onto the splines, there is around 8mm missing

Is this normal ?
The engine has an inside oil seal and an outside bearing

The bearing is supposed to be flush to the circlip right ? The only way for the drum to be centered to the chassis would be for it to go further inside into the engine case, but it would not be possible there !
The brake drum is this one : made to fit internal oil seal
https://eu.rondaleyscooters.com/products/fa-italia-rear-hub?shpxid=866a1bf1-f117-4208-b903-c31a196ef19a
The engine is at the right place, the chassis is straight !!
I'm lost on that one !