Something is definitely out of position with that loop. See pic 1 to see how it should look with the sled at rest.
It's hard to tell without seeing it, but I suspect you have arm #28, or parts 20, 21,22 assembled wrong, or arm 28 flipped over. Arm 28 is keyed to shaft 32 and can only go on one way.....unless you have them flipped over backwards.