I checked and the parts are cut clean with no burs or any other obstructions.
The problem is that the 200 foot pounds of torque I put on the bolts is used to draw the 1/2" steel parts together and no torque is left for actually clamping the parts together. Also, after torquing the parts, they touch only a small bit at the front of the shank since the head side plates had to move so much.
This is my first time dealing with a WDH, but I wouldn't think I should have any play or free movement in this area once the parts are assembled.
Below is another pic. That's a fairly large gap to close by bending the 1/2" steel.