Stephen,
The taper used as gauge that is showing the "ring around of the large end of the taper" MUST be an accurate 2 MT. (Not something similar such as a Brown and Sharpe! ) Otherwise it is useless as a gauge for a 2 MT taper.
If you are unaware, you should only check a 2 MT with a 2 MT gauge, not the small end of a 3 MT.. The angle of Morse Tapers all differ slightly as the size changes. The only one that I can remember is 2 degrees 52 minutes for 2 MT, but all the others are different.
(Check on Google to find charts giving the tapers for various Morse tapers )
ASSUMING that the "gauge" IS accurate, with the contact only being at the large end, is it possible that the part has been bruised and closed in? This would cause a ring on the gauge where just the bruise makes contact and wipes off the blue.
Have you tried (have you the equipment? ) clocking the large end of the taper, to check for it being out of round?
If it is that easily bruised, the part may well be soft. In which case gentle use of a 2 MT reamer may put things right fairly quickly.
Hope that these comments give some help
Howard