Just got my Dana Sixty back from having three fourths of an inch removed from one side. When I went to put the brakes back on, the calipher hits the rotor on the outside. It is an eighth inch off from being centered. I can find no reason for this and have had it off and on at least twenty times. I'm lost so any help will be appreciated. Any suggestion about how to fix this or what the problem is?

Is the bearing fully seated on the housing end?Sometimes the lock ring gets hung up on the inside not allowing it to seat properly.

Did they do anything with the axle bearings? If replaced, maybe it is not seated all the way on the axle causing it to stick out further.

Same problem on both sides?

Most brake kits come with shims for centering the caliper on the rotor, did you lose those or forget to put them in?

They are just thin washers you stack between the caliper and mounting bracket to get it centered.
My Aerospace setup on my old car has washers on the bolts holding the bracket halves together to get it close then thin ones on caliper bolts if I am remembering correctly.

And one other thing, did they have axle cut down 3/4” also? If not it may be bottoming out against other axle not allowing it to seat all the way in.

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Machinist friend came out today, and it seems that the axle had walked out of the bearing by a sixteenth of an inch. That would be enough clearance for everything to line up. I have never seen a race axle that the retaining collar was not tack welded to the axle, but this one was not. We had an inch and nine sixteenth between the axles in the spool. Odd thing was the axles are the same length so we swapped them to opposite sides and that cured most of the problem. If we put the axle into the tube it came out of there was no clearance for the calipher on the driver's side. The friend has raced since the 60's and said it was one of the oddest things he had ever seen. The axles even went in easier when swapped side to side. Thanks for the help.