Nuts are done up. The nut is quite long. If the nuts had a captive end on. You’d use exactly the same amount of thread on the stud. You just wouldn’t be able to see it.
bit of a blurred pic from Google. But here is a factory Disco 2 steel rim on a Disco 2. Using the same factory wheel nuts. You can clearly see the thread is inset the same as how they are mounted on mine. This is how Land Rover would have supplied and fitted these rims.
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My Disco ones didn't look like that. They still had the alloy covers like standard ones but were smaller.