The 3pc bearing set is put in after the outer clutch basket and before the inner hub is installed. You will install the smallest diameter part of the set first, then the needle bearing, lastly install the thrust washer that covers the needle bearing completely. If you can see the bearing rollers when you have installed it incorrectly.

Some bikes have scallops on the gear, there are no issues with the bearing running on that surface. However, improper installation of the 3pc bearing will likely lead to bearing damage and possibly damage to the inner hub surface.

Tip: When installing the 3pc bearing, putting a small dab of grease on the needles and thrust washer can help keep them from slipping out of position when installing the inner hub.