So the local 4wheel parts shop helped me out and test fitted a BFGoodrich All Terrain T/A KO2 35/12.50R17 on one of my wheels. And yeah it ain't gonna work without something changing. I had hoped I would be able to have them mounted up and daily drive until I figured out which way I wanted to go with the mods to accommodate the tires, but rubbing is too much for me.
I have a KDSS relo on the way, but I'm starting to rethink about the need for regearing, some of the folks not being happy about using the KDSS relocation, etc. So I'm stuck at this point. However, in the interests of helping provide some information, here's some shots of the BFGoodrich All Terrain T/A KO2 34 /10.50R17 versus the 35/12.50R17
Wheels are at full lock.
Thanks to everyone for their input.
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