Actually the 1.25" Spacers made the tire hit the rear wheel well because of the change in the arc of the wheel and the width of the tire. They do "just" fit, they are really close to the upper a-arm. In the Tire shop we lifted and lower and turned the wheel all over but they never did rub. But it's so close it's not really acceptable. I'm going to order some Light Racing UCA's to gain the clearance back.
So technically no you don't need 1.25" spacers to clear the tires or any spacers, you "should" use something like a 1/2" spacer or get new UCA"s to clear. Off-road this amount of clearance is not acceptable, on-road.... maybe. I've seen others run this tire with 1.25" spacers with there mud flaps on and the only way I see that is because there lift is raising the front end more than the daystar lift does getting the tire 1-2" higher and clearing where these contact (mudflap & almost the body mount).