There are two fitment issues. One is the diameter of the pin. The other is the depth. Removing the spacer would solve the depth problem but won't help if the pin diameter is too large. Still need to grind or drill.
Even with removing the spacer the pin sat to deep on my D35 and had to be ground so as not to hit the axle housing.
On my 8.25 the depth was fine without the spacer but the hole in the perch still had to be opened up