HELP - Cragar SS Lug Nut Washers Keep Crushing - Need Alternatives!

Agree. First thing to do is double check these specific rims with the manufacturer for the type of mounting.
We already know how these particular wheels mount. Look up in this thread, there is a great verbal description and there are photos of the O.P.'s wheels: Straight shank nuts, no tapered seat, flat washers on a flat mounting surface. That's how Cragar made this wheel for ages. Only very recently they have changed to a tapered lug. That is not what the O.P. has.