The spacers should sit flush on top of the race, right?
no, they just fill in the space Your aesthetics may be happier if you paint the silver one , black .
then put it back together ./
I wonder how well the head set is sealed against grime and water. The bearing cover usually has a rubber seal ring as part of it.
pull the fork and slide a section of innertube over the lower race then put the fork back in ..
a sealed bearing race for almost free..