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I got some help from Precision propeller and found out that the spacer is a two piece spacer and has different applications. On my application only one piece of the spacer is required and I installed it with both. The part of the spacer that broke is for a different engine so I was able to use the rest of the spacer and install the prop correctly with the specified torque. This information was in the instructions however it was a little confusing because the spacer came packaged in one piece and there was also another washer in the kit that is for yet another application.

All seems good now and precision propeller was very helpful. I hope this resolves the engine tick.