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The “step” you refer to is there to enable someone to use a crystal inserter. The kind used to shrink the crystal to allow it to be inserted into the bezel without having to remove the movement from the case. That “step” (as you call it) is going to have to fit into the bezel recess of the case. So you’ll have to measure the largest diameter of the crystal, which means you’ll use the 31.17 reading, but the crystal you will need will have to be a bit larger than that, so you can shrink it for insertion.