Looks like they didn't bore out the hole deep enough? Are they using lug nuts with the 60 degree bevel on them? or some type of flat "mag" type nuts? How long are the stock studs? I have spacers on a vehicle which only has 1 inch of exposed threads and they completely fill the supplied lug nuts - although they are special "short" lug nuts which are only 0.650" tall including the beveled section.
Sorry about my comment previously, BTW - you do understand what is going on - just seemed like you didn't some how.
No worries. It's just a hard thing to explain because we're dealing with multiple sets of studs and nuts.