@adude007 The switch is not the problem. All decora switches are the same size.That LEVITON backing plate opening on the left side is lower.

@B.Will  thanks for the thought on the backing plate. I'm not sure that is the issue. Here is an image with the backing plate off. The dumb switch sits lower than the kasa smart switch. Also a picture of me holding the decorative plate on. I cannot get it to fit on completely because of the relative position of the two switches  

@adude007 Make the mounting screws just snug for both switches.

Then you can move the decora up and the kasa down.

@B.Will  there is no up down play in either switch when the screws are loosened. 

@adude007 The only reason left is that the mounting holes in the 2 gang box are misaligned. 

@B.Will I suppose that's a possibility. I took a look at the old toggle switches and they have slightly wide slots which allow up down movement. The previous wall plate fit ok and this is probably why. Appreciate the help. 

@B.Will I was able to test this idea out by taking an old rocker style switch and was able to determine that the holes for the face plates line up to both the kasa and the Leviton. I also noticed that the Leviton rocker I am using has this brass clip in the top mounting hole which takes up the play. I am going to grind out some material in the mounting slots on the dumb switch to provide the ability to shift the switch up. 

you can see an image of the brass clip here:

https://www.homedepot.com/p/Leviton-Decora-15-Amp-3-Way-Switch-White-R62-05603-2WS/100078412#overlay

Thanks for all your trouble shooting ideas!