I thought the same thing, I pulled the cover last night and the TOB is still all the way back but the bearing is seized. When it first started making noise I pulled to the shoulder to make sure the spring on the fork had not broke or come off since that would let the TOB rest on the pressure plate.

The Z bar may be an issue, I'm using one from a '68 340 car since I couldn't locate one for a '68 318, they were supposed to be the same but I haven't been able to find one from a 318 car to compare it with.