Spindle tolerances are 0.0005", i.e. the spindle should only be 0.0005"-0.001" smaller than the bearing ID. It's a near perfect sliding fit, not interference/press.
Things this precise are generally ground for surface finish and precision. Aftermarket stuff that has critical dimensions like a spindle should always be measured to be trusted. Their ability to hold tolerances like that is highly variable. As you can see, that spindle probably also has a taper on it as well.
It also means you should be measuring these things with a micrometer and telescoping gauges, not a caliper. I mean a caliper gets you pretty close, but if you want to know 0.0005" increments, they aren't the right tool.
And sanding can work, but it may take you an eternity to remove even 0.0005" with high grit sand paper. If you have the ability to chuck it in a lathe with live centers, your life will be made much easier if you go the sanding route and will do it guaranteed evenly. Just keep a micrometer by you and measure constantly.
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