Thanks for the recommendations everyone. I thought about modifying the fender to get that extra space, but would rather spend money to fix the problem, hahaha! Joking aside I’d definitely prefer to just run parts that work well for the job at hand. If that means swapping stuff out, then so be it.
I’ll definitely look into the derailleurs mentioned above. With that said, if anyone has a derailleur laying around let me know. I wouldn’t have a strong preference to one over the next, however if one pops up that’s clamp on vs. a braze on, I’d prefer to go that route, but not a deal breaker if I need to get an adapter.
@ Kai, based on those photos you’d be absolutely right, but there’s about 5-6mm of space between the chainring and the chainstay. It’s just the angle of the photo that makes it look like it hates the chainstay!
@ Peter, if nothing pops up here I’ll give you a ring!
Also, sorry for the long winded post above. I wanted to provide info in hopes that maybe this can help someone with a similar issue down the line.