You are supposed to have 1/8" space between the crankshaft and the clutch where the crankshaft is 1/8" inside the clutchplate. The splines of your Crankshaft are worn causing the clutch to sit further down the crankshaft. To correct this issue, it is time to replace the crankshaft and replace the clutch plate.
So that clutch driver or crank shaft is bad. The clutch driver should not be flush with the crank. It should hang off the crank shaft by a little less than 1/4 inch.