I was in exact same situation replacing a 1970 door lock got a name brand lock and the barrel was protruding while hitting back of knob hole.
Wondered same thing,
it's like my new lock was John Holmes wtf.
Anyways I went back to home Depot there was a $25 Cdn deadbolt Lock called Defiant there , I recall also using one last year at a friend's apetment it's pre configured for the smaller hole and adjusts by spining it to longer hole.
VIOLA no drilling or or Jig headache required.
DEFIANT brand $10-15 USd or $20-$25 Cdn Walmart, Home Depot and Lowes all sell it. Installed that and a pull handle on both sides, last year I simply drilled a hole for old liock above deadbolt which was in existing hole. That way I had a pull without buying anything extra. I may do that here and return gate pull.
Defiant Single Cylinder Stainless Steel Deadbolt DL61 at The Home Depot - Mobile
Also Google how to adjust the backseat and your brand of lock.