Steering knuckle hitting sway bar

I had not noticed that before, nor the torn boot.
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That should resolve once its under load, but still looks like a lot of interference. Can you zoom out a bit? Maybe you've got the steering knuckles either reversed or upside down? Something else worth noting is that, when the wheels are off and your hub is in that state, you've got a lot more range of turning motion than you do once everything is hooked up fully with the wheels on.

 

Make sure you torque the bolts through the bushings in the A-arms with the A-arms horizontal. i.e. in normal driving attitude. The bushings do provide some of the support when the suspension is at full travel and they should be torqued and set at the normal horizontal driving position.Just stick a jack under the end of the A-arm with the shock and A-arm bushing bolts slightly loose. Jack up the A-arm until its close to horizontal or you are lifting the corner of the car and then tighten/torque the bolts up.

When you let that corner of the car down it should clear the ball joint.

You dont want to torque everything up with everything hanging down. It would load everything up when at the normal drive height and load it up even more when it bounces under load. You want them torqued up with the car at its normal driving attitude. This is true on the rear suspension as well

 

Not related to the interference issue but the bolt through the drop link and shock absorber is the wrong way round. The parts diagram is wrong in that regard.

Regards
David

 

Some interference is normal on full drop.
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