Food for thought, and discussion - when the nut is fully torqued to spec. it basically turns the axle, the distance piece and the two inner races in to one solid piece. Like it was machined out of one solid piece of steel. The outer races are just along for the ride, moved only by the force of the balls.
It seems to me that the companion flange bearing's outer race is not seating, causing the inner race of the wheel side to pull in to try to meet the distance piece. Already said this, just wanted it all in one post.
Also, a tape measure is not the proper tool for that measurement.