if you use the Advanced adapter output shaft instead of the factory 700r4 shaft you bolt that np205 and th350 adapter straight to the 700r4 case.
If you do that the drive shaft you have pictured will not clear the 700r4 pan.
Since you are going to change it all again to the 4l80e, I suggest the spacer, and some very good bolts and a brace bar from the bell housing to the t case.
Image of my set up using the Advanced Adapters output shaft, showing clearance using a first gen k5 drive shaft and yoke.
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