You might want a little extra clearance when running on steam to allow for thermal expansion of the aluminium (?) piston being possibly a bit greater than the cylinder but it's probably not critical.
You have to remember it is not the piston that provides the seal, but the piston ring / packing. So a bit of extra clearance on the piston ensures it will not bind but does not mean it will leak by to any problematic extent. Same on the piston rod gland seal.
Piston to bore fit is more critical on Stirling engines that don't have piston rings and on high performance model aero engines and the like. But not so much on low revving steam engines.