In SpaceClaim or DesignModeler, draw a tangent line from the end of the nozzle out into the open domain to split the open domain into two faces. That way you can continue the inflation layer out into the open domain. You can even add inflation on the upper side of that new split line in the open domain.
Also, the solid that makes up the nozzle wall does not end in a knife edge the way you have drawn it. Offset the vertical edge upward by the wall thickness and add a small vertical line at the exit plane of the nozzle to represent the wall thickness.
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