The washer butts up against the bearing to control the thrust on one direction. The crankshaft butts up against the other bearing to control the thrust in the other direction
If the crankshaft thrust face is in good condition the bearing can be moved and the dowel pin and lube holes can be redrilled using the housing as a guide. Drill 15/64 and ream to 0,249-0.250 for the dowel.
Thrust should be 0.010 to 0.016
Max allowable is 0.025.
Another option is to make an all new bearing out of T6 aluminum that fits the conditions.
Crankshafts can also be built up to restore original clearances and fit original bearing specs.