2022 Specialized Allez Sprint Headstock Alignment?

I recently purchased a 2022 Specialized Allez Sprint. During stem
reassembly I noticed locknut on top. There is a note about aligning to the head clamp. The arrow is currently on the right side of the clamp gap. Is this correct, if not how do I adjust? I looked online without much success. Thanks for any help!

I don’t have any experience with this particular situation (where the specific orientation of the starnut or whatever mattered). But looking at the picture, it appears as though there’s a gap in the red flanged sleeve thing just to the left of the arrow, which places this gap directly overtop of the gap in the stem. I would think this is exactly where you want it to be - the idea being as you tighten the stem bolts, the gap decreases (for both parts). So I wouldn’t worry about it - looks to me like you’ve got it set up the proper way.

It’s the exact opposite of that. You don’t want the gaps to align in order to minimize chance of crimping the steer tube under compression from the stem.
To the OP - Loosen stem screws. loosen the bolt in center of steer tube compression plug. Don’t unscrew it all the way, just loosen it. Rotate steer tube plug until arrow is in center of stem clamp slot. Re-tighten compression plug. Re-tighten stem screws (to correct torque).
If compression plug doesn’t come loose when you loosen center bolt, tap lightly on the top of bolt or on the top of an allen wrench in bolt to break it loose.