This is effectively what I was describing in option 3 of my post.
This joint is oversized and accepts stepped stand-off sleeves that fit the ID of the joint reducing the pivot bolt size and allowing for more articulation.
If the joint is just barely binding, you might be able to simply get away with a sleeve spacer top and bottom.
This would be easy to mock up and test with other materials (like washers as suggested) before committing to finding/fabricating solid 316 bushings.
There is a supplier in CA that I use for 316 bushings like this.
For what he charges, it’s typically not even worth uncovering my lathe to make my own unless I can’t wait for some reason and already have material on hand.