Am I ok with this? KB107 in La block

At this point, I’d just get different thickness gaskets and put it together.

If you want to run “thinner” gaskets you have to make sure the chambers are at least as big as the bore.

Put the heads on the block and going in from the bottom, scribe a line into the deck that depicts the bore.
The heads need to have the chambers relieved out to the scribed line.