I've seen the above bracket used on a transom like yours they have a wedge shaped block behind the mount..
It will steer fine and if you need a sharp turn you can turn the motor as well..
Yep, I got a free boat year before last and spent most of last year tinkering with it... I got lucky with the hull but it still has a way to go..if you like tinkering as much as you like boating then you'll be okay...
You didn't have the bar in far enough to engage the bearing or coupler. The grease on the larger segment of the bar would have been removed by the bearing.