I know you squared the K-member, but did you move it to its maximum RH travel? I honestly doubt there's enough there to make the difference, but every sixteenth helps at this point.
I understand your frustration and experienced it first-hand when I was building Agnes' engine. There were a ton of trials in that build, including the very-well-documented battle--nay, war, for there were several battles--with the valvetrain. I didn't actually build the engine nor have any idea who did the machine work. I was convinced it would come apart on startup. But it didn't, and there was much rejoicing. I actually drove the car around a little and had an enormous feeling of accomplishment. You'll get there, I assure you. You'll remember the suffering and frustration, no doubt, but will be worth it when in moves under its own power: "I did it. I won."
Perfectionism is a tough row to hoe on these old beasts. Thank God I was rarely beyond "good enough" with Agnes because the ol' girl simply doesn't warrant such detail, but that valvetrain was nightmarish. That had to be as close to perfect as I could manage without $2,000+ rockers. Everything about those W2s was a nightmare. I don't know if you followed along, but machining gaskets--both intake and valve cover--was something I'd never pictured myself doing. Just when I thought I had everything dicked, it dicked me right back. Burnt and very-expensive pushrods, wiped rockers, smote shafts--that valvetrain had it all (thanks Sealed Power!).
I'm still mid-head change nearly three years later, and at this point I'm considering pulling the whole engine for a piston swap. Regardless, it's not so much frustration that's kept me from it as it was a change of seasons. The Challenger evacuated the garage late in the year, and I decided a rearrangement and cleaning was in order over the winter before Agnes took its spot. That turned into quite its own project. A bunch of other crap happened in the meantime that kept my attention elsewhere. Now Agnes is front and center, hoarding space in the garage, so it's time to get after whatever it is I'm going to do, be it the heads alone or the whole piston job... but, I remember it running and me driving it. That was a massive accomplishment after all the work we'd done to that silly car (floors, frame rails, reinventing the rear suspension, full 4-speed conversion, etc. ad nauseum). Am I frustrated? Of course, but not enough so to abandon it entirely. I've heard this thing run. I've driven it. That's enough motivation to revisit it and make the necessary changes, if not to such a degree as to be detrimental to all other things that came along in the meantime. Also, it's hard to get motivated when you're doing something you've already done.
Nobody wants to ding their brand-new, expensive headers that were supposed to fit. I completely understand where you stand. That being said, ding 'em and move on.
Remember, you need precious little clearance anywhere on the driver's side, since by nature the engine is going to move away from that side under throttle. There's almost none on Agnes at the (manual) steering box, but even with the ginormous rumpety cam the two have never contacted. 1/8" is probably enough, 3/16" is plenty. Since the engine also rises as it counter-rotates, just make sure that little bit of clearance extends down far enough to clear the coupler, since it seems that's the real thorn here. Instead of just using a hammer, see if you can find an old socket extension, or a chisel of which you don't mind blunting the edge with a grinder. Local heat with a propane torch is plenty, and less damaging. Small, precise dings hurt less in the end, both from the final aesthetic and "I can't believe I'm intentionally damaging new parts" standpoints.
You've reached the point of acceptance, so do what you must and keep moving. Spending literal weeks on this has sucked more joy from the project than doing what you must and hitting the next phase would've.