I can't remember what forum it was on but the solution was to install washers between the lower control arms and the sway bar to eliminate contact between the sway bar and the link extension.
However, there really is no reason to install the sway bar again as it truly is a useless component on the rear suspension. As TomMudd and tjkj2002 have noted in other threads, the sway bar doesn't prevent sway because the bar is bolted to the lower control arms but not to the body or other fixed point. The sway is controlled by the front sway bar (take it off and go around a corner at a moderate pace - THAT will put stripes in your shorts!) and the rear sway bar is just added weight.
So Fil, there is a solution to the contact between the bar and the link extension but I'd suggest you just remove the sway bar and enjoy your KJ without it.
Bob