1967 CL77 Rear Wheel Binding

[quidger]

I am restoring a CL77. Installing rear wheel.
Rear wheel has been relaced with new spokes and spins true on the the truing stand. New bearings. Axle appears to be straight.
When I install and tighten the axle nut with moderate torque the wheel is hard to turn. There's no way it would turn at all if I torqued it to spec of 142 foot lbs.
I took the wheel apart to see if there was anything obvious that would cause this but didn't see anything. I thought maybe the new bearings weren't seated properly and were protruding a bit but they were fine. I don't see how the brakes could be a factor.
Thanks for any input that you all may have to help me figure this out.
Incidentally, 142 foot lbs seems excessive.

Thanks

[oldbikedude]

is the center spacer between the bearings?