Yeah I’ve decided I am going to put it closer to the ring gear by taking the factory shim out and just going with a bigger shims. Also don’t you have to set backlash in order to get the correct gear pattern.Yukon instructions say to set your pinion depth first, bearing preload second, backlash third.
https://www.yukongear.com/downloads/manuals/yukon_general_installation_instructions.pdf Page 14 is the wear patterns.
You need to focus on your pinion depth before doing backlash. MY unprofessional, and inexperienced eyes, say your pinion is too close to the ring gear on the Coast side of things. It looks like the top set of photos in the Yukon manual I linked under Number 7 on page 15. I'm basing this off the bottom two teeth in your second photo posted just above this. The ones that are kind of out of focus.
Matter of fact....looking at the second photo above, top two teeth with ONLY yellow paint on them REALLY look like the pinion is too deep to me.
Follow their setup instructions, wipe the paint off the gear if you can, and maybe change pinion depth by 20 or 25 thousandths (random number I came up with based on your posts above) from where it is right now to see what the pattern does when you pull the pinion out more.