I'm wondering if the washers need to be passivized? Another thought is electrolysis, chemically induced, or maybe electrical
Teflon would have been fine as a spacer as long as you're not changing any critical impeller clearances.
As noted earlier, Teflon will creep (cold flow) under pressure. So your once tight fasteners will get looser and could fall off. This can be bad. Stainless is better. Says the guy who used Teflon washers under fasteners once. Won't do it again.Now you tell me.