The pinion is too far away.
Note how the drive side is shaped like a CRESCENT and curves off the peak of the tooth.
Ideally, you want a wide OVAL pattern with wispy edges centered between the PEAK and VALLEY of the tooth. Contrary to popular opinion, the pattern does not need to be centered between the inside and outside diameter of the ring gear.
I woud try a 0.003" thicker shim.
