I think you are unclear as to what the setup needs to be. When you have the spacers, stem and compression plug installed, the top of the compression plug should lie 2-3 mm below the top of then stem. This is so when you tighten the top cap it pulls the fork up to apply preload. Your compression plug should not be flush with the top of the stem. If it's sticking 2mm above the stem, and you don't want to recut the fork, stick a 5mm spacer above the stem and put on the top cap. This is not the recommended setup by Ritchey (I asked them about this specific fork as I own a Road Logic), but will work.