I reviewed the photos from TM 9-8014, page 255, Figures 142 & 143.
The bottom appears to have the same machining.
No photo of the top.
So the answer is...
factory machining?
Since the inside of the knuckle and the knuckle itself are symmetrical it is a safe assumption that the top required the same clearance machining as the bottom.
Thanks Wes!
The upper and lower king pin bearing cups were worn.
It appears one may have spun (based on marking along the outside).
Would it be prudent to use a Loctite 648 type bearing retainer when installing new cups?
The housing does not appear wallowed out and it is still an interference fit.
If you still have a proper interference fit then I see no need for any LocTite. These are steering pivot points and are not exposed to any form of high speed spinning forces. Those which show evidence of the bearing race rotating were most likely seriously worn or corroded or damaged causing the rotation. All common results of aging without proper preventative maintenance.