Barring one time when I needed a "field" repair, I've used new axle nuts. The hub-side mating surface isn't what I'd call a "machined" finish, but I generally do wire brush it and flush with solvent to remove any surface corrosion before putting applying/torquing the nut.
Pardon the 101-level questions:
All mating surfaces the axel nut touches are 100% dry/clean (no oil, grease, paste, dirt, etc on driveshaft threads or flat surface the washer touches) before nut is threaded and torqued?
Can the staking be done in a manor that provides positive retention, where nut cannot reverse as seen?