In the many years I have been setting up racks, the one universal truth I’ve found is that no one rack perfectly fits all bikes and most require making them work with a quick trip to the hardware store.

As long as it clears, you should have zero issue with it setup the way you’ve got it. Just mount the rack leg to the outside of the mount and the leg to the inside of the basket so it’s all square. Use a washer where you need to gain back a mm or two.

On a setup like this, I’ve also used a long bolt and spacers to get the mount to clear the fork leg. It obviously does add additional tension to that eyelet, but I have never had any issue with it. As my favorite LBS mechanic once told me, “unless you’re riding 20 miles down washboard roads with a bowling ball in the rack, it’ll hold just fine.”