YES, the circled part is what you cut off.
Those top coils stack tight under load when installed..measure how thick the coil wire itself is..probably about 0.50" thick. Mark exactly where the edge of top coil end is on the next coil down and cut that complete top coil off at that mark. This way the coil will still clock perfectly is OEM when installed. It will lower that side by that thickness..probably 0.50".
I don't know that I'd cut any more coils off..even though the top three probably stack tight under load.
I cut the FULL top cut off my RR, but did still have to use a spacer under the LR to get to perfect side-by-side balance.
LR (1.0") & RR (0.50") and my cut coil RR (0.53") gave me exactly 39.75"LR & 39.75"RR now
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