That line is too thick.
Seems like I am correct. If you look really close the SHAFT is out of line. You can see that the rear end of the coupling is not square to it.
The shaft is to the left of the line at the coupling end & to the right of the line at the other end. You have to zoom on just the shaft & the end of the coupling to see it.
I cannot see how new mountings will change anything unless you have rotated the engine a little & moved it sideways to line up properly. You should be able to do that on the slots in the mounting bases.
Can now see the way they have relied on the hose and stuffing box to support the shaft - but still don't like it! Assume you are keeping that rather than changing to a modern seal. If you are sticking with the 7/8" shaft just make sure the coupling, cutless and prop are all machined to the same size as 22mm and 7/8" are incompatible (22mm is 0.022mm smaller, enough to make a difference particularly on the coupling and prop). normally the taper on the prop would be different (1:10 metric, 1:12 imperial) but not critical provided both shaft and prop are the same.