It took me a while to figure it out on my 1957 G175. You will see that the brake plate also acts as the stay/torque arm and is secured by a set screw. This limits the range of rear wheel movement when adjusting.
I think the large nut on the stub axle does up pretty tight on mine but can't remember if it still turns, at least once once the spindle nut is tight.
I would check, but I'm out of action with a crocked hip at the moment.
"Do not adjust your mind, there is a fault in the reality"
1957 175 Sport