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My first thought too is the nut on top of the strut. Perhaps the bearing insert is the incorrect one for the KWs — looking at Vorshlags website, they list several different coilover brands/models which means they are not universally compatible with one another.
Are you using stock KW springs? Perhaps the perch or is not the right diameter (?)
Have you tried jacking it up, taking the wheel off (to unload the droop) and grabbing the top of the strut to see if you can manually wiggle the strut within the bearing ?
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