Has anyone tried this set-up? I'm concerned it might not fit (hit the spokes or the cranks).

My KH27.5 came with a good enough Shimano disk brake, but the hose is too long so I would like to shorten it. After watching a few Youtube videos showing how it's done, it seems I'll need certain specialist tools and a few bits (olive, etc), which seems like a bit too much hassle.

All my bikes, including my trials bike, run Avid BB7 with FR5 levers and I've found this set-up to work very reliably over the years, not to mention how mess-free and easy they are to service with just a couple of basic tools. Unfortunately my bikes are not with me at this moment so I can't just swap out the brake and test. I wonder if anyone here has tried (or even uses) Avid BB7 on their KH frame.
Thanks!
Cristiano