FWIW, you can find a more legible version of the above TSB at
https://www.tr3a.info/PDFs/1956bul.pdf (scroll down to pages 13-14)
If you are installing a new felt seal, then I prefer the instructions given in the TR4 workshop manual. Basically the same as above, except you do an initial setting without the felt installed. Mark the position of the nut, pack the bearings, install the felt, then put the nut back to the mark.
Also FWIW, the later procedure with the 5 ftlb says to back off a full flat, which leads me to believe that they don't expect you to do 5 ftlb with your fingers (I know I can't, on a nut that size). I believe the intent was to ensure the felt got compressed enough, but even that is not always enough.