Originally Posted by
Troul
this might help show where the lack of material causes the issue with redrilling the crank to a shorter length,

Exactly. Thank you so much. Your holes seem to display ovalized (probably from an aspect ratio conversion), so clearance is even less than shown.
0.7mm = 0.0275", less than 1/32". Coins aren't that thin, and they are stronger material and not under stress.