That's about what I do too. I gotta say that axle pivot is one weird design; a really strange way to make an axle pivot. It's hard to see anyadvantage to doing it that way. And it's true that not many tractors are built that way.
But it's what we have with the Kubota, so we work & make the best of it. My axle pivot bolt came with a zerk in the end of it, but that doesn't stop it from wearing. Although if it didn't have a zerk there I'd add one.
To my mind the shop manual's adjustment procedure it's one of those instances where the shop manual tries a little too hard to put cute measurements and numbers on what is a subjective process.
I do mine by feel. Raise the front end and then tighten the pivot bolt until the fore and aft axle play is all taken up but the axle still oscillates freely. I do NOT then add some 1/8 turn of looseness. To what point would one do that? After I tighten the locking nut I check that nothing has changed. Sometimes it takes a few tries to get it just right.
rScotty