I see that guard was made for the Mark VII, I don't recall having seen it before.
You are using the 5/8" universal arbor. Change the order of the washers and blade on the arbor to move the blade closer to the headstock. 🙂
ie, from left to right. arbor, thin washer, blade, thick washer, tongue washer nut.
You likely don't need the second thin washer for this application. The universal arbors came with one thick and two thin washers, but usually only two were used depending on what was being mounted. so 1 thick and 1 thin, or 2 thin for wider things like dado stacks, grinding wheels,etc.
picture of the metal Mark 5 lower guard mounted on my 10ER to demonstrate washer and blade placement.
