spacers under the stem are fitting over the fork steerer Out side diameter .. outside.. 9/8" forks are 1" inside

so shims with a 1.125" ID will fit sloppy on a 1.0" fork.

(1"OD forks are 7/8" inside)

top cap pushes doen the stem&shim+ spacers beneath it ,
once you tighten the stem+ shim the adjustment is secured ..

Aesthetics aside, shim can be taller than the stem,
just put the excess underneath and the spacers will be that much less in height.