I don’t think there is anything wrong at the back. In any case, chain line refers to the distance from the midline of the bike to the centre of the chainring, in the case of single speeds, or the sprocket depending which end you are interested in. The distance from the chain to the dropout is not the measurement to go on (in other words, bikes with the same chainline can have different distances from sprocket to dropout depending on design and set-up).
In your case, the rear chainline is (120/2) - 18 = 42 mm.
If the VP BB is indeed 103 mm and JIS then it should work. So either the wrong BB is in there, or as mentioned above the chainset hasn’t been torqued up properly. I suspect the latter.