When adjusting the air gap on the
clutch face, you are adjusting the 3 bolt
brake flange.(no power applied,and clutch installed on the engine)
The brake should be tight, otherwise it would not cause a "brake" action,when no power is applied.
When properly adjusted, you should find it very very difficult to turn the pulley with no power applied, as the brake is applied.
With power applied, you should be able to turn the motor/crankshaft with the pulley, allowing for the normal motor resistance, but no scraping sound of the brake surfaces.
Edit: it is important to adjust the bolts evenly so the feeler gauge has an even feel to it, in 3 places.
That insures the mating surfaces touch evenly on the brake side as well as the clutch side of the disk.