Sorry, there is something wrong there. I have fitted three of these now with no issues at all. There should be no need to reshape the spacer like that. All the movement should be rotational. There should be no pitch at all.
Now I am not disputing for one second that this has cured your problem, but I am saying that the problem stems from something else, not the spacer. I don't know what at present, but that is, I can assure you, not necessary if everything else is in kilter. The rag joint is there to absorb minor steering vibrations and a certain degree of kick-back through the wheel and partly to cushion the valve actuator below as the teflon seals in there suffer if they get over pressured from downward movement in the column.
What you are suggesting is that the rag joint in your case appears to be acting as some sort of universal joint which works through and angle. This should not be the case. That really would load up the valve actuator. I imported the original spacers to the UK from which Milner made theirs. On the original that I used, I had to shorten the un-threaded portion of the studs seen in your pic as they fouled the bottom of the bling hole in the spacer and also open the top of the same hole as the shoulder of the spigot would not fit into the hole. I did not alter the one I passed to Miler to copy. I understand that the spigots are there in case the rubber joint fails so that you don't lose all steering and of course they limit the mechanical twist that you can put in the joint without the wheels moving.
Chris