Yes, that center sleeve should rest against the inner bearing race. The brake backing plate is aligned by the axle, and the only parts it should touch are the axle, the inner right side bearing race and the spacer that goes between the backing plate and the chain adjuster (excluding all the brake parts and brake stay arm). When the axle is tight, the backing plate can not rotate. One thing to check (which has already been mentioned, but you need to verify) is the proper installation of the wheel bearings. There is an exact length spacer between the wheel bearings which makes it possible to tighten the axle without loading the bearings themselves in compression - just the inner races. The wheel bearings need to be pressed into the hub far enough so that the internal spacer is held with zero play between the inner races. When the axle is tight, that spacer gets clamped tightly between the inner bearing races. The rest of the components on the drive side stack up against the left side inner bearing race and should end up being an exact fit up to the left chain adjuster. Some swing arms are a hair tight, or a hair loose, but not the obvious problem you are having. So along with determining the correct parts, make sure that all the stacked components that make up the span between the chain adjusters are in fact contacting each other, and not being held apart by some other issue. When you put all the bits together, the wheel should spin freely, and should spin just as freely with the axle fully tight. If not, there is a mechanical issue improperly loading the bearings, or interference between parts somewhere.
