Yes, the roughly 1/16" vertical clearance is normal. The compound slide is supported vertically by the bottom of the slide resting on the two lower flats of the dovetail. And the gib should not touch the right lower flat.
My guess would be that either there is a "dinged" spot on the top right nearly sharp edge of the male dovetail on the swivel, or one of the gib screws is catching on the edge of its flat bottomed hole/slot instead of seating in the hole against the flat bottom.
The proper/safe way to install the gib is with the compound swivel and compound slide removed from the pintle on the cross slide and inverted on your work bench. In that position, the gib's beveled top surface rests on the slide, instead of the bottom bevel wanting to rest against the swivel, which will try to happen if you try to install the gib with the swivel sitting on the pintle as in your photo.
I have some new steel (Clausing went to plastic in the mid 1970's) gibs. However, aside from the line of wear (that won't much matter after you find and fix the problem), there probably isn't any reason to replace the one that you have.