I agree with checking the sequence of parts, but you'll need to look at 2 diagrams - the rear brake and the final drive.
As to the bolts and weld nuts hitting the tire, disregarding the possibly offset rim, has this bike been lowered?? I have standard length Progressives on mine, and I can lay my hand across the back tire with the back of my hand just touching the edge of the fender. That's a lot of clearance, Clarence..
When you do figure it out, please let us know.... that's an odd one.
