Here you can see that the stud threads are obviously too long to the point where there is non-threaded area showing past the governor.
Jeff Schans at Thunderbolt sent me next day a variety of stud lengths to rectify this. On the bottom is the original stud followed by some of the replacement options that Thunderbolt sent to me.
One thing I noticed as I was going through this exercise was that upon removal the threaded blind hole in the case was actually a lot deeper than I thought it was. So rather than swapping out the studs, I set the existing stud a little deeper and all was well. Sorry for the run-around Thunderbolt. Thanks for working with me.
Now back to research on the 860-3. I noticed that everyone seems to be using the 860-5 now. I have to go find out if I need to swap this out.