I’ve recently bought a Schwinn Cimarron. It was advertised as frameset l. Upon first assembly it appears the fork is for the next frame size small. Please see pic and lmk what you think.

That's what it looks like. Try to get your money back or an adjustment on the purchase price so you can buy a proper fork.

Might just need a headset with a lower stack

I think "next size" would imply a bigger difference than that. But definitely a problem. Is the race on the bottom fully seated on the steerer? Bearings put in in the right orientation?

You can probably get the fork crown faced down get enough room.

This.

Also, as noted, check that the headset cups, crown race are fully seated and that the bearings are mounted properly (if top and bottom bearing sets are different).

It ends up I had the bearing seals reversed and the bottom bearing inverted. After flipping I was able to get 2.5/-3 threads exposed. It also looks like maybe the top race isn’t fully seated. What do you think?

also can a cable hanger substitute for a washer?

Definitely looks like it would work better if it was faced. Which doesn't appear to have ever happened.

Do you recon that is enough thread to be safe?

I have ridden with a bit less, just check your headset tightness every 30 to 50 km.

Of course it is. All it is doing is locking the top in position - almost all the load is taken by the bottom race.

And yes, a cable hanger can take the place of a washer.

That's a 39.5mm stack height headset. Did it come with the frame?

Am I too late to the party to suggest having the frame faced? It won't get you two or 6 more threads but it will help ensure the cup and race are correctly seated.

Yes it did. I actually like the looks of it. I’ve seen some other headsets with shorter stacks. I figure for the cost of a new headset and then paying a shop to do the swap the cost might be comparable buying a Paul components funky monkey cable hanger.

if I did get the headset swapped do you think it would damage the paint?

I wouldn't bother swapping, if I liked it to start with, that amount of exposed thread is fine.

And if it was MY bike I could swap it without damaging the paint. Don't know about your bike shop.

what's the trick to removing it cleanly?

Knock it out from inside. I usually do this last, when I strip a frame. Set the frame on the ground (on something appropriate to the level of care due the frame) with the chainstays under your toes and the head tube in front of you, tap the inside edge of the bottom cup with a punch and hammer. The cup will (eventually) fall out on the ground/floor/carpet/flokati, should not touch the paint. Flip the frame to do the top cup. For a punch you want something round, just a little smaller that the head tube diameter, so you can angle it over to catch the cup edge; I just grab any old bit of round bar or thick-wall tubing that is handy. You want it only a little smaller so it contacts a larger portion of the cup rim edge.

OR

Get a bike shop you trust; look for dirt under the fingernails.

That is not the original fork, but a standard (probably Tange) replacement.

How are you able to tell? I’ve seen many of these same chrome forms on this color frame? It is a tange 9E btw

1). I sold them. I believe that is a 1987 model. The fork was painted to match the frame. I do not recall Schwinn EVER having chrome forks on their MTB's when I worked at an LBS (1986-1992).
2). The catalog scans of the of the era will confirm #1.
3). I bought that same bike, orginal, 5 years ago. Sold it 2 years ago, so no pictures unfortunately. The fork was painted.
4) I have replaced a number of bent/broken MTB forks over the years with ubiquitous chrome tange replacement forks. I still have several NOS ones in the barn.

I will say this. Based on your comment, i have looked about the interwebs and I agree I do see a lot of Cimarrons with these chrome forks. I cannot explain this I do not recall ever seeing them this way on the showroom floor. I do know that there were some issues with those frames though. I recall at least two coming back with the top-tube cable guides coming unbrazed. I am not sure if there were fork problems as well that lead to some sort of mass replacement. I do not recall replacing any on Cimarron.

Regardless, I do recognize you are correct that there seems to be a number of them this way on the internet, and I may not recall things 100% correctly.

interesting. I’ve seen numerous pics of different Cimarrons with the ubiquitous chrome fork. I just assumed this was the color scheme for this period. I think this model is a 1989 year bc of the brake placement. Would you be interested in selling one of your forks? I really like the braze ons

I the fork you have too long or too short? Measure from the fork crown to the top and I will see if I have one that works.

You've got to ask yourself why it has a replacement fork. Is that a respray on the frame? It looks a bit funky around the headtube.

im pretty sure is stock and legit. If it’s a respray it was definitely a pro forge bc the yellow warning decal is glossy. If I am not mistaken these have oval shaped filet brazed tubes that give that unique shape.

I’d be interested in as long of a steerer tube as possible. As long as it has the threaded mid fork braze ons

Looks like they did do it. Huh. I do not recall any of those. We sold probably 10 Cimmerons in 1987 (most people bought Sierras...less $$, or Fishers, more $$). After that, the KOM was all the rage, then the Kestral, . Almost seems like they had some 87's left over and marketed them as '88's. I cannot quite tell if the fork in the picture has the mid-fork brase-ons or not. Most of the earlier Schwinns had them, but they seemed to go away about 1987ish.

I do not have any replacement forks with the mid-fork braze-ons. Sorry.