The people who built up that kit have obviously never tried to install one of their products. You're going to need to do a couple of modifications to make it work. First, run a 1/4" NPT tap into the block (carefully) to deepen the threads and allow the reducer bushing to penetrate the full depth of the threads. Then do the same thing with a 1/8" NPT tap to the female side of the reducer bushing so the crimp fitting thread bottoms out. That should give you just enough room to clear the pushrod cover by making a short radius bend in the tubing. The original fitting was much shorter, and didn't use a reducer bushing. I would drill the female threads out of the reducer so the adapter drops into it all the way to the hex, and silver solder the two pieces together before threading the reducer into the block.
Jerry