Do you place the bike in neutral, or the highest gear as you turn the engine over?

what does it measure in the loose part of the chain after that

I don’t know that holding that tape like that is the “proper” way to measure the play. You are wiggling around way too much to get an accurate measurement. Try putting the end of the tape against the underside of the top of the inner primary and measure down from there. Also, you didn’t show the difference in the tightest and loosest part of the chain. Probably a good idea to check at several places rather than eyeballing the tightest spot. I have the same comp sprocket and adjuster on my ride, but after installing it after adjusting the chain to 5/8 in the tightest spot its super loose at the loosest spot, hence, the chain really whips, is noisy and the handlebars vibrate. Seems to me the compensator sprocket is “out of round or the center bore is not center. So not that happy with this set up. Also the manual adjuster is a good idea, however the stock hd adjuster is much more heavy duty and the Baker unit is attached with gr 5 bolts, hd bolts are at least gr 8 Have a great day

Doesn’t seem like the right way.