Making a dummy gun is an "iffy" kind of project. If you have the skills to make a dummy, then it should not be a problem to do it right. But you must be sure to follow through, because it will be clear to a jury you also have the skills to build the real thing.
#1 Ditch the barrel. Make a dummy out of round stock, solid steel. Weld it to the trunion, both ends. DO NOT keep the unused barrel.
#2 weld the bolt face. Make sure there is no trace of the pocket that holds the cartridge base. Use hard surfacing rod if available.
#3 (option 1) Put the bolt in the receiver, and weld a large block of metal behind it, so that the bolt cannot be removed without removing the block, which cannot be removed without destroying the receiver. It must be big, there must be a lot of welding.
#3 (option 2) Select a tube with a smaller ID than a standard sten, machine the bolt so it will fit. You must still do steps 1 and 2. I think this will satisfy the "readily restorable" clause.
If you can think of other extra things that can be done, do those too. Welding the bolt into the tube would be a good one. I doubt you could ever get busted after that is added to the other steps. Another example, weld a disc in front of the barrel-trunion and shorten the cocking slot so that, were the disc removed and a barrel installed, the bolt would not travel far enough to chamber and fire a cartridge. This would change the tube so it would be different from a sten reveiver. Another plus.
You absolutely cannot have any other sten parts available beyond the parts in the dummy. No spare trigger groups, bolts, barrels etc.
You can still be busted if you have a spare sten kit around. It will be considered "intent". If you do a slight modification, i.e. a dribble of weld on the tip of the barrel, (easily removed) and a tiny block in the receiver, ( held on with a tack weld) and you have a spare bolt, you're going to jail if you attract the attention of the law enforcement community. If this is a big concern, you might document the assembly, with photographs, demonstrating you welded in the solid barrel before you cut the rest of the body of the tube for the parts installation. You also need to examine your lifestyle. If you are the kind of person who attracts law enforcement attention, this may not be the kind of thing you ought to be doing. If they want to get you, you will be charged anyway. A baseball bat is nothing, unless you are considered a danger, then it's a deadly weapon.
The ATF busts about 800 people a year. There are more that one million unregistered machine guns in the US. (ATF's estimate) If you follow this process faithfully, you are not going to be worth busting unless you have other questionable items they would be more interested in.
What NOT to do. Make a working sten and promise yourself you will weld it up later. Big mistake. Don't even go there.