Ok. So I have an M50D from a 94 explorer I bought for the same reason mated to the 1350. She in the rain now so I climbing under there. I can make those measurements tomorrow and compare them to yours. It may well be your transfer case but seeing is believing. As for your clocking. Your 2H looks the same as mine.
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The first pictures you posted it appears the shifter is setting in neutral and the transfer case is 2H. Makes it look like it would be correct if they made contact. Iām wondering, after all the photos and hubabaloo that maybe the shift lever on your case is shorter in length.