I have noticed on other KKs as well as mine, that the leather shroud that goes around the E brake handle, is horribly made and does not actually reach far enough and always slips off the handle.

Does anyone else have this issue? Has anyone come up with a solution to adjust it to properly fit?

The only fix if it is that crappy is to have the center console replaced under warranty.

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2008 KK Liberty Sport NIGHT OPS EDITION + GILLS
OEM & Custom Skids - Factory Tow Package - Rock Lizard Skink Super Sliders
Prototype JBA 4 Inch Lift - JBA UCA's - Flowmaster Super 44 OR - Whacked Resonator
Jet Stage 2 - RL Gecko Basket Rack - Custom Winch Bumper - Recon 10.5K Winch