I don't think that a bit of clearance at the end of the plungers is a problem. There is a counterbore in the hole for the plunger that limits how far it sticks out.
If your clutch is grabby the first thing I would do is to make a hole to get access to the adjusting screw for the plunger and increase the tension on
just the C7 shoe. Too much pressure and the clutch will slip, to little and it will grab. Use small increments maybe 1/4 - 1/2 a turn at a time. In your case try taking a little off. You will soon see if that is an improvement. It is a bit of a pain removing and refitting the shoes after adjustment. Leave the clutch cover off for a quick test ride, keep your trousers away from the clutch.
It is quite complicated compared to a multi-plate clutch and difficult to understand how it works when you first look at it. (Or even the 2nd, 3rd, 4th ... time.
) Mine has quite a lot of "slop" in it, I really should replace some of the worn bits. It does, however, work well and has a very light action at the clutch lever. I removed a multi-plate clutch to fit the original once I'd got a bit of an idea about the adjustments.