... no threading of a nut on in advance (to maintain the integrity of the threadlocker)...
+1
I normally grab the threads to be removed in the vise and hacksaw off the rest, but 1/8" doesn't leave you anything to grab AND cut.
Rather than grind (which I might do if I were feeling lazy), I'd probably grab the bolt head in the vise (or grab the whole thing in the soft jawed vise if it has a round head), and file off the end with a really large (18" or so) ******* file. Then switch to a fine single cut file to finish it up.
I always finish with a file. With the bolt sticking up, your file should be inclined 30 degrees from horizontal to run the chamfer all around. I finish off by using a tiny triangle file to clean up any burr inside the last thread.
Gonna need a mill to shorten it then over to the lathe for the chamfer. We're talking 3 phase here and many hundred amps. Better head to the electrical section but read up on the codes first (there will be a test). Don't skip the section on welders cause you're gonna need one after you remove too much.
BTW: The preapplied thread locker probably came from china so it's no good, will be just fine or could be the best stuff ever.
WHAT?!? Forget the mill and just chuck it in your 6-jaw chuck in the lathe, adjust your steadyrest to hold it in position, and part it in place. Then use your compound to cut the chamfer. Finally, setup your threading gears to take a pass over the threads to remove the chinese thread locking compound (you may have to move the steady rest to do this), and apply Loctite 8675309 thread locker with the proper applicator specified in the manual, while ignoring the color of the thread locker, as it is meaningless.