Yes, the clutch will drag harder when not engaged than when it is engaged. This is normal. You are trying to drag all those friction disks. You did soak the friction disks in the same trans oil you will be using before loading them into the clutch pack right? They MUST be soaked before installation.
I'd run the oil level a little high. I'd probably check to see how high the oil level is before putting the top on, then adjusting it accordingly. If you overfill it, it may puke out the vent tube.
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