Guys,
Thanks for the suggestions. I shimmed the adapter plate with 1/16" aluminum to push out the adapter farther out for a fit check. This combined with grinding a bit on the capliper gave me enough clearance. I need to make a new adapter plate about .300" thick or make a .125" shim to add to the current supplied adapter.
Also, with the the wheel pushed out further, my lug nuts are flush with the stud. still debating whether I should replace all the studs. I think the supplied ones are 3/4" of thread perhaps go with 1" thread length.