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Craftsman walk behind mower
Model number: 247.375900

I cannot figure out how this self propel cable attaches to the handle. I have verified the parts including the cable and handle.

There are three holes on the handle, but the cable has a spring on the end.

Anyone have any ideas?

Have you considered that you may have it wrong end to? In my experience the z bend on the spring usually goes into a fitting on the self propel unit and the other end of the cable connects to the handle. The ball on the cable end fits inside the cone that the spring forms.

According the IPL he is trying to install correctly. OP just look at the wear pattern on the plastic piece for tell tell signs of the previous location.

Item 24 is the drive cable.