Your right, it shouldn't make any difference in the raised position, but something is clearly changing on his machine and its likely has to do with the hitch being installed incorrectly or somehow, something has gotten way out of place.It wouldn't (or shouldn't) make any difference if it was up in the stowed position, the long driveshaft is held firmly at a set angle by the hitch, it doesn't change it's angle no matter how high you lift the blower. I've observed this when I install the hitch and driveshaft before installing the blower.
The short intermediate driveshaft changes angle but the long one doesn't budge once the hitch is in place.
Edit: I also don't use the blower raised up any more than it needs to be, Im just commenting on the possibility that this caused the OP's issue, if that was what you were inferring.
The moving pieces on the 1025r are either the front axle pivoting and the snow blower being lifted on the hitch. There is no angling of the hitch unless he has a plow also and has the angle cylinder for that implement. In any event, those hyd lines should be turning the blowers chute since he isn't angling the hitch.
Otherwise, all of the pieces should be stationary. It shouldn't matter implement position, wheels turned or not and axle pivoting or not. There shouldn't be the serious wear shown, let alone any contact. The wear mark is so uniform in the steering tube, its very likely something moving on the same plane up and down and not left to right as the axle pivots in the center.
Something is terribly amiss, that's for sure. My money is on the hitch being installed incorrectly.
Its hard to visualize it being installed wrong and working, but something has raised the long shaft at least an inch and is causing the rubbing. I am almost tempted to go out and take my QA off and see if it could be installed in incorrect variations.
But I will wait until the OP posts pictures of the snow blower on the tractor, etc. before undertaking forensic work on my machine to figure his out. The OP lives about 75 minutes from me if he gets in a real bind, I am close enough to give him a hand.