That's not a helicoil. That is over tightened, pulled out aluminium Harley thread. Those bolts don't have to be THAT tight.
You will now have to install an insert.
To put the front wheel together; put it together loosely, then tighten the pinch bolts on the left side, then compress the forks by pushing down on the wheel a couple of times with the brakes on hard, then tighten the axle nut to specified torque (To pull the two side together), then compress the forks again (to align everything), then the right side pinch bolts (if there is right pinch bolts).
That gap might mean you have bent forks. Yes, it should be "snug".
With everything still loose, loosen off the pinch bolts in the triples and turn the fork tubes, one at a time and watch that gap. If the gap changes, you got bent forks.