I would have thought that you need the forward face of the cutout in contact with the bedding (it's the lug, isn't it?) and the rear face with generous clearance so you don't shave the bedding replacing the action in the stock. I would be inclined to clear the flat too & let the circular action sections fore & aft carry the action. As an enhancement, you could use tape relief along the screw line of the action, ¼" wide or thereabouts to give the bedding a sort of V block finish. I've found that round actions tend to contact the hardest on that line and therefore not benefit from the rest of the bedding.