on my JBA A-arms, the ball joint has a 1/4 inch of space between the ball joint and the knuckle. The supplied washer rattles around in there and can not be tightend down any more to snug it up. the ball joint is too large it seems....

Why don't you just wait until your lift gets set up right. Meaning, everything torqued down when the truck is on the ground. Then see what problems you have. Right now you could be having all sorts of problems cause it wasn't put on the right way.

_________________
2012 Jeep Liberty "Arctic" Edition. 2.5" OME lift, 1/4" clevis spacers, 245/75R16 GY Wrangler Duratracs, AtTheHelms steel front bumper, semi gloss black emblems and fuel door, 15% tint all around.

My lift kit is on correctly. I just think the control arms need to be retorqued

I believe that the reason the ball joint looks like it's too big, is a bigger than stock truck ball joint made by a somewhat reputable manufacturer is being used for the upgraded control arm.
In its intended application, that ball joint fits deeper into a beefier knuckle. Yet the lift needs to still account for the buyers that don't get the control arms and have to reuse the OEM small ball joint hole.

I believe the thick washer's purpose is to support the bottom of the blue rubber boot in order to hold grease. The boot is too short to bottom out on the knuckle. See if you can pull the boot down till it touches the washer and still holds grease.

_________________
2012 Liberty Latitude 4x4,3.7L,42RLE,MP1522,D30M/8.25"@3.73,215/85R-16 LTX A/T2,Bright White
1974 CJ5,258,T14a,D20,D30/D44@3.73,TransAm Red