this is not on my 7.3.. I got some 2 inch hub centric spacers on my k5 blazer. The blazer stud comes flush with the spacer nut when it’s torqued down which is about 1/2 or 3/4 an inch.. any thoughts on this issue?? Is that enough grab on the wheel lug nuts?

It's not important how far the stud sticks out of the nut, but there is a term for this : Thread engagement.Thread engagement needs to be AT LEAST the diameter of the stud and since we're talking about an older GM I will assume you have 7/16" studs. This means that you need a minimum of 7/16" worth of thread engagement....and with 20 threads per inch, this means you have 8.75 threads engaged.

As long as the threads extend to the end of the stud, you're golden because you will NEVER gain more strength or clamping load than what is physically in the nut no matter how much stud is sticking out.