Rear wheel bearing install question
 

So I had a rear bearing go bad and had new ones (all 3) installed today by a shop. I noticed that the bearings in the wheel hub wouldn't rotate after install due to the inner bearing spacer putting a lot of lateral pressure on the inner races and I figured that's not right, so I tapped the bearings out lightly with a hammer on the inner races until they span smoothly but the spacer was still tight.

Wondering what the deal is. Shouldn't the spacer contact the bearings when they are bottomed out in the hub?

The replacement bearings are the All-Balls replacements, bought through honda stealership.