Bob,
I just looked at two other Remington/Eddystone P-14 barrel breeches, and both have that "extractor clearance cut". It appears to be cut with an end mill cutter and the barrel breech partially rotated around the bore axis, requiring a special fixture. The first barrel stub I examined had just a shallow counterbore on the breech face, and the extractor slot. It is not an extractor cut, but rather a channel designed to divert breech gases in case of a ruptured cartridge case. This action was designed almost 100 years ago, and cartride brass metallurgy was not what it is today. Cartridge case failure was much more common then in service rifle ammunition.
I don't think that circular breech cutout is even necessary, and I know of no gunsmith that duplicates this cut in rebarrelling the P14/M1917 action. The P14/M1917 extractor is in a fixed position relative to the bolt. It does not rotate with the bolt face. I don't think you need to shorten the extractor to clear the barrel breech. You may need to stone or adjust the extractor hook to reliably engage the .405 Winchester rim and case diameter.
Let us know how it works out!
HTH
John