Finally get to pretend I am one of the cool kids - Holley kit swap

Maybe unlikely, but could it be possible the fender has just moved in a little over time from fatigue? So the "problem" might actually be the fender to begin with, not the K frame? I'm more inclined to believe that it was just tolerances at the time and how things stack up when all assembled together, but makes you think at least.

I am measuring from the inside of both frame rails to the center of the crank bolt and seeing an offset of 1.125" rather than the 1.25" it should be. So the clearance to the inner fender is more an indication of the wrong offset rather than a structural issue with the inner fender.