Have no qualms. It's on all the way. If it wasn't, the spacer that resides on the outboard side of the wheel between the caliper and the swingarm wouldn't fit. You did apply some high temperature synthetic grease to the mating splines didn't you?
One thing I notice is that you appear to have some oil residue around your bevel box breather. It would be wise to check the level. I holds very little. It takes fully synthetic Mobil gear lube and it ain't cheap but then neither is the box itself if you sieze it up from lack of lubricant.