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Could use something as simple as a wall thimble for a pellet stove: https://www.homedepot.com/p/DuraVent-PelletVent-3-in-Wall-Thimble-3PVL-WT/100679724

If its close enough to weld you could always cut vertical slits into the exhaust pipe, and use a heavy duty band clamp to tighten it up and take up some of the space with contraction/distortion to make it a tight fit. More than one way to skin a cat.

If you are going to use a piece of exhaust pipe, just find an exhaust shop to flare out a piece of metal to the diameter you need. Should be pretty easy if they have a flaring machine. Or they can flare out what you have, if its not too large of a jump. Either way I think you can make it work.

Thinking outside the box, not sure its the greatest idea but you could always find a conduit coupler with a spread clamp on one side (to go onto BI already on the machine) and use EMT instead on the way up? Lighter for certain.

Find a local plumbing supply shop, should be good to price compare black iron. Lowes over in Ware has 1.25" x 10ft in stock at $50.xx per length. I used to buy a fair amount of BI from R.A. Manley in Palmer.