2000 yz250 power valve issues

So i just rebuilt my 00 yz 250 top and bottom end. The cylinder has been resleaved stock bore still. Now I noticed that the the power valve is hitting the sleeve and won't close all the way. Sleeve seems to sit in about a 1/4" into the slot for the power valves. Now I have the motor completely together and it runs just has no power at low end. Is it because of the power valves?

That is exactly what happens when the power valve is stuck open.

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