That looks about right. You don't want the flange of the closer adapter touching or close to touching the end of the spindle. You don't want to have to machine a custom adapter if you have to run a reamer in the spindle taper to clean up any damage.
Put a collet in, insert piece and tighten down, loosely. Measure if it gets drawn down more and if part is tight. You can always dykem the insert up and reinstall and see where the contact is.
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