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Spacer needs to be there to accept the torque of the Axel nut. AND, it needs to be the right length to prevent lateral torque on the inner race (as Megadan mentions).
If you have the rear axel assembled with the right spacer length and torque on the axel nut (50 foot lbs or so), the rear wheel should SPIN FREELY in neutral (on the stand). That is your test.
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-NOS 2020 KTM 250SX (2-stroke motocross)
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