I've been running this bike setup 1x with a 9-sp 11-32t (without the wolftooth) for the last few years without problem. The shifting would be fine with the new setup if the cable pull was to spec, that's the issue I'm having. The derailleur is over 2mm inboard of the big cog if it starts just under the small cog.
I just remembered there's another alternate routing to reduce derailleur travel on Sheldon's site, so I'll try that and see if it works.