Thanks to this forum and the abundance of information, it looks like this is normal after installing an All Balls kit in an RD350 head tube, which is the same kit that was installed prior to me disassembling.
This being said, the spanner nut atop the dust seal, and the cap nut for the top of the stem, have more room to be tightened than stock. I do have some sort of spacer that goes between the cap nut and the triple clamp itself. It isn't a spring washer, and maybe that's my problem.
What is the general consensus on how tight both the spanner nut, and the top nut should be in this situation? Similar to a swing arm where just tight enough where gravity cannot pull it? Your advice is appreciated.
Pretty sure I figured it out. I forgot you cannot delete post on forums. Hopefully I'll see some of yall at Deals Gap in May.