I can think of a couple of things that might be a factor in causing the "cracking" sound you describe when the pivot is torqued up...

1) The adjuster sleeve (inside the right hand pivot hole in the frame) could be screwed too far out? When the swingarm is inserted, the adjuster should be tightened up against the bearing end cap and then backed off a little before final torquing up the pivot bolt. If the adjuster is too tight up against the end cap, then when the correct torque is applied everything nips up too tightly.

2) Is your pivot bolt straight and true? Even the slightest bend in it can cause all sorts of woes.

Just a few ideas that spring to mind. Anyhow, hope you get to the bottom of it.

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