checked mine, position of spindle gear, driven gear and quadrant clamp looks much the same as yours.
All I can suggest is that the headstock on your lathe is set at about 1/4 inch from the left end of the lathe, which ain’t right. On my ML10 the back plane of the headstock sits flush with the back plane of the lathe bed.
You will need to loosen off the clamps move the headstock as far as you can along the lathe bed to clear the attachment area, give a bloody good clean to the attachment area, vee edge at front etc, removing old swarf and other grot (from the base of headstock too, if you can get to it, or are prepared to free the belt to release the headstock entirely).
When replacing, set back of headstock face flush to the rear face of the lathe bed and check fit of change gears. Make final adjustments to headstock position to give best fit of gears (it wont be a hanging offence if the headstock is displaced plus or minus a mm either side of the back face of the lathe bed).
Now here’s the thing, you will need a DTI and say a 1/2in to 1in D x 6in L piece of quality steel bar (or silver steel if you can get hold of any). If you trust your chuck, clamp the steel in the chuck. As you tighten headstock clamps, move DTI on saddle back and forwards along bar to make sure the headstock remains aligned with bed as you crimp it down. This is even easier if you invest in a 2MT test bar, not used a lot, but bloody useful when it is!
Plenty of stuff on line regarding lathe alignment, the method I have suggested is kwikn’durdy as it will not give a good result if you chuck is suspect. That is why a test bar is better. I suggest an iterative approach with repeat attempts until you are satisfied.