I did mine on a mill. I suppose you could do it on a drill press with a center cutting end mill. And yes, it's to give the nut a flat to tighten against.
The factory adjusters are a tapered thread. All you have to do is chase them with a good 5/16-18 or 3/8-24 tap (can't remember which) to finish them out.
I've done 1 set already, but haven't spot faced them yet.
My old Sig Ersons were interference fit.They finally started backing off after 30 plus years.Bought MP adjusters and they fit perfect.Still running them and adjust maybe once every 2 years.Rocky