Need help with step 14 AL5D arm assembly

I’m having trouble understanding step 14 of the arm assembly instructions. It seems like the instructions don’t match the photo so I don’t know if the screw goes on the inside of the bracket or outside. Where does the bearing and lock nut go? I am trying to attach a little gripper with the medium duty wrist rotate upgrade. I would appreciate any insight someone could give!

lynxmotion.com/images/html/build143b.htm
The general idea is to create a pivot at the rear of the servo. You can assemble it either way.