1960's teisco pickup replacement

just looking for some advice here. got a 1960's teisco, and because of the way the pickup is setup, the action on the higher frets is really garbage. It's raised a lot higher than normal pickups, and it won't lower at all. I took it off to see if there were any issues, and nothing seemed out of the ordinary. Just looking for some guidance on the matter.
 

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That pickup ring is too high. You need to modify it by sanding the bottom down until it's half as thick or making a new one or finding one that's thinner and fits.
This is assuming the pickup rout is deep enough to allow the lower pickup height.

It is not unknown that the Japanese would put nicks in the last few threads of the screws (bolts actually) so you couldn't back them out all the way from the pickup's screw tabs. You'll know that if they wouldn't turn lower. Look for deformed threads at the ends of the screws. You may have to cut the ends off to remove the screws; don't force them and end up destroying the threads in the tabs. The screws are likely M3 (metric) if you need to replace them.