Peak voltages at the motor are due to the fact that you're sending a high frequency PWM signal along the motor leads. The motor leads have an associated inductance and capacitance value with them, depending on conductor type, length, insulation, etc. You have to think of motor leads in these installations more like transmission lines in RF systems. The impedance of the transmission line (motor leads) and the load (motor) are quite different. At the point of mismatch is where the damage is done. When you place the reactor at the source end of the transmission line, you're lengthening the voltage rise time, adding inductance to the system, thus lowering the peak voltage the overall system and ultimately the motor, sees.
If you added a reactor to the load end, you'd likely experience failure in the reactor due to voltage overshoot as opposed to the motor. There are load end filters called wave traps, that are some kind of RLC network, which dumps excess energy to a bank of resistors and earth(?), but they're quite large and much more costly than a simple reactor. There are also sine wave filters, which again, are a RLC network but placed at the drive end. Again, they're quite large and more expensive, but they do a good job of making the voltage signal down the line much more sinusoidal. I think if I were in your shoes, I would first make sure that my motors are rated premium efficient; these motors have tougher insulation and a higher corona inception voltage usually. Second, I would definitely use a load reactor at the VFD end of the system. Thirdly, I'd investigate options for adding a grounding ring to the motor rotor shaft, or using ceramic bearings (non-conductive); these break the current circulation path across the bearing which is what's causing your fluting to begin with.
My description probably lacks some polish; not an engineer but I do occasionally sleep at a Holiday Inn.