[vectorit]

The lock hardware fits so close the the inner door, that there should be no way the window mech should interfere.

Is the bowed out portion of the horizontal rod protruding out towards the window mech?

I have run into this issue as well, and the bottom line is that it is in wrong.
Plus it is so tricky to assemble, and I did it so long ago that I can not tell you specifics other than to follow the instructions and take your time.