Nimbus Hatchet - Which rim/tire size would you build?

So I thought I’d best go and try this this morning before other things took over. As you can see below the 32" wheel from my Oracle nowhere near fits the Hatchet frame. It looks like it is at least 15mm from the bearing seating in the housing.

Just for completeness, this is with the tyre pumped up to 65psi (max stated pressure), just to be sure it was fully inflated.