Is this a new problem? I mean, has this bike run correctly with this torque converter on it in the past, and now it is having a problem?
What was the last work done on it?
The TC does need to be inspected/cleaned/lubed somewhat regularly. Excessive crud can keep the driver sheave from fully retracting, springs can break, the bushing the belt rides on wears out and breaks up.
In the 2nd picture ( the one from the rear tire ) your clutches are clearly not lined up correctly. Your driver needs to be moved out about 3/16 ". Or move the driven in. Looks like you have room to do that. Pretty big gap between the chain and the backside of the driven. The two inner sheave faces MUST be lined up almost perfectly. Use a straight edge and washers to get it right. Most of the kart supply shops sell special shim washer kits, much thinner than common hardware store washers.
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