How committed to finding an alternative are you? How complex/expensive a solution can you tolerate? Do your sheaths have a welt/spacer on the edge side of the pancake?
Here are some off the top of my head thoughts.
- chuck Chicago screw parts (one side at a time) in a drill press or clamped down hand drill and use a file to reduce flange diameter of the spinning part to a size you like. Sandpaper to polish if you think it appropriate.
- * complex approach *. Grind opposite edges of Chicago screws m/f part flanges into more rectangular shape aligned with edge of sheath to allow trimming off more of sheath edge. To do this, you'd mark & drill sheath with wide sheath flange not yet trimmed up. Establish & drill fastening screw holes as close in as you'd like. Insert & tighten screws to final tension. Now mark screw flanges top & bottom of sheath *in line parallel with eventual edge of sheath* to outside diameter of female threaded post. For marking I recommend Dykem layout fluid & scratch awl. Now unscrew each screw, keeping each pair together, because the orientation of each screw vis-a-vis eventual sheath edge will be unique. Grind/file circular screw flanges to scratch lines & reinsert screws in their particular hole. Now trim excess sheath flange close to rectangular'ish screw heads.
Edit to add: Now that I thought a bit more, it would be easier, simpler, and more efficient to simply simultaneously grind sheath edge & screw flange to final profile at the same time. That avoids all the complex sequential steps of this option.
- drill & tap a metal strip to sandwich between the front & back of the sheath along the line of screws, sorta like clip nuts as used on cars. Alternate screw locations to avoid butting the screws into each other. Drills & taps can be found in very small sizes (think jewelers and optics worlds). I've gotten a tap set M1-M3.5 by Wolfride on Amazon, along with appropriate size drill bits. Yakamoz is another brand there that gets good grades. I used M2 tap IIRC to tap inside of a *tiny* roll pin in an ignition assembly so I could use itty bitty screw to extract the pin. I used a 1/4" hex converter mini chuck as the tap handle. Just spun it slowly & carefully in my fingers. One turn in, half turn out, one turn in, half turn out, ... and being VERY sensitive to tactile feedback from my fingertips. *TAPPING FLUID IS MANDATORY!* Those tiny taps can snap at a thought.
- if money is no barrier, machine shop can make/modify a fastener to meet your needs. But $$ there could be used to buy more knives. So low priority on this option.