There is obviously some mismatched parts it appears.
As for grinding the tire..it seems to horrify some people, will try to explain, a bit..
I did not look into, the tire size fit, alignment etc,when i mentioned it, because it will work. unless you need/use that edge. We do it on bikes with oversize tires.
Most folks can find an angle grinder, but not as many can make their own spacer on a lathe.
Get someone to turn the wheel while you grind, done right, the wheel might turn on its own driven by the grinder.
Left alone the bike would take some off anyway, but not the extra clearance.
The bigger issue is the bike needs a good going over, andthe owner has homework to do..