The mystery was solved after some head scratching. It turns out that when I inserted the bolt into the bushing, I did not actually capture the bushing. So it was sitting up by itself above the bolt. Tough to see in this area. So I dismantled everything and reinstalled the bolt through the bushing, then installed the pulleys.
I have to admit, this area where the two cables cross over each other bothers me just a bit. But I went back and looked at the plans, and they do show that crossover.
