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Tom, you seem to have a different type of magnet assembly. The one in my picture is supposed to be placed as shown with one end over the internal blue pole piece. When I first got the set, I thought maybe it was accidentally shifted, but no. It is shown this way in both the RCA and SAMS manuals for the CTC-5, and is working properly in this position. I don't think there would be any difference based on changing to a 21FBP22, but there would be a difference if I had the same type of lateral magnet that you do. Steve Dichter sent me a couple of scans from different publications also showing the type I have mounted the same way mine is.
It appears that the end of the cylindrical magnet in mine is broken off, or at least an adjustment knob is broken off. It's still functional, but loose, and that is apparently why it was taped in position.
Edit - thanks for the photos with dimensions - I will compare to what I did.
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