I'm just not sure HOW it's supposed to fit and WHERE the underarms are supposed to meet.
You have 2 front sections, 2 sleeves and a back section. The underams come together where the sleeve 'edges' meet the front and back sections. They should just touch together or be about an inch from meeting.
Most top down raglans have you CO an inch or 2 of sts on the body section - knit the front, put sleeve on holder, CO x sts, knit the back, put other sleeve on holder, CO x sts, knit the other front. This allows for some ease in the underarm area and fits better than those patterns that don't have the extra sts.