I have re-read this thread and I still don't get what I am missing. Please point it out to me.
Every thread I have ever been tasked to end at a shoulder has been terminated like these, Pump shafts, Baxter Bolts, every thing but plain ole form bolts in which the plain ole form nuts allow for the tapered threads at the end. I can not think of any item ever that required the threads to run 100% to the shoulder as that is pretty much impossible. Vis a vis 90° and 60° engineers typically avoid adding things like that to a design.
You may be able to kludge and make it work without the relief, but in most cases and this one (knurled thumb screws) there is no point. It'd be easier to cut the min diameter relief at the same time you cut the major OD after knurling.
Or what am I missing?
Steve