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I think you'd always have to flare the step ever-so-slightly to avoid a stress-riser at the sharp internal corner. A better bet would be to grind away the inside of the top spacer to create a funnel shape that fits tight up around the flare. The spacers aren't taking any load so there's no problem with removing material.
ffm
Ye someone needs to make a stem where the OD of the step perfectly matches the OD of the 1 inch spacers and the step is not flared