Too tight can damage bearings.
Headset top cap torque.
The edc steerer plug is required for edc tool storage and is compatible with most aluminum tapered steerer.
As others have said the top cap is pre load only.
Depending on how loose your headset bearing feels you can make adjustments to the bearing tension with the 5mm allen bolt located in the top cap.
On to your problem it could be the clicking you hear is because the pre load top cap is a tiny bit loose.
A torque wrench is a good idea at this point.
Slide your headset spacers and handlebar stem back onto the steerer tube and put the top cap and bolt back on top of the stem and begin to preload the headset by tightening the preload bolt.
Do up the headset top cap until it is just tight at this point you should be unable to turn your stem spacers.
Anything you can imagine.
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Adding tension to the bolt will pull the threaded star nut which is found wedged inside the steerer tube upwards moving the fork crown race bearing more tightly into the lower headset cup.
Do not overtighten it.
Then tighten stem again.
Make sure it still turns freely.
You will need to loosen stem then tighten this top cap slightly quarter turn or so.
On a custom bicycle headset cap for any type of bike.
It is non load bearing.
You want the minimum torque to reduce play in the headset.
Align your handlebar stem and apply the appropriate torque rating to the steerer tube clamp bolts.
I would say 5 n m is safe.