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That looks like the frame was dropped in shipping on its head.

I think that is the mounting point for the steering damper if I am looking at it correctly. You could find a welding shop that could cut that off or weld ontop of the flat part and re-cut the threads. Or you could just not use a steering damper there, and if you want one, maybe find one that attaches on top of the triple clamp in its place.

So long as the steering stem bearing hole is still a circle and everything else looks fine and is straight, it should work. You should replace that stem bearing in there, and I think you'd find out pretty fast if the hole was damaged when removing and installing a bearing race. Cheap way to make sure at least the damage didn't spread to that area before investing more time into this frame.

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