+1) the steerer tube was cut off, the stem just grips the steering tube..
the way threadless headsets work, you have the top cap pushing down , tightening the bolt.
then the stem is loose around the steering tube, once you were happy that the bearing adjustment felt right,
then tightening those 2 bolts on the back of the stem secures that adjustment..
the ways to raise the bars have been shown. Ideally , not cutting the fork off so low would have been ideal
then you need even more spacers....
....