Recently finished the installation of a 4" Jeepin-By-Al Lift Kit;
Adjust-A-Struts, AL's Upper Control Arms and self cut down CV's in the front
Al's Bilsteins, Springs and Y-Link Extension in the rear
Cragar 15" x 8" wheels with 4.0" backspace (this might be greater back spacing than is optimal)
Kuhmo KL71 15.0 x 31.0 x 10.50 tires
Pinch weld pounded, inner fenders trimmed (there is nothing more to remove)
With tires near full steer and the Liberty in reverse with a little brake, clearance off the pounded pinch weld at the rear of the well is 1/2" to the highest tread block (they alternate hi/low on this tire). I would NOT put any larger tire on and expect clearance.
Previously with 2.5" of lift, these tires rubbed in this condition sufficiently that I preferred not use them as daily drivers due to the rubbing (pulling into a parking spot made embarrassing 'accident like' noises)
FYI, the vehicle is a 2006 CRD with aftermarket bumpers both ends and a winch.
Only problem currently is occasional contact of rear sway bar to Y-Link Extension.
I would consider this the perfect lift for the 15.0 x 31.0 x 10.5 tires, though I had hoped to be able to go up in tire diameter and hold the width at 10.5 when I started the project.

First you can toss the rear sway bar since it doesn't really do much anyways .
Second with a CRD you're pretty much maxed out anyways so staying with 31s is good, bigger you'd need to regear.
Third the wheels you chose are part of the rubbing issues , 7 inch wide ( which is wide enough for the tires you're running ) with 4 inch backspacing works great . That extra inch is the problem. Or 8 inch with 5 inches of back spacing would work but 7 with 4 backspacing is best

What do you measure middle of wheel to bottom of the flare ?

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MUDD'S MOTORSPORT'S We do IFS lift installs ,
03 OVERLAND EDITION /Kilby-Skidrow-Mopar-4XGuard skids/ 2.5 inch TOTAL CONTROL JBA coilovers -JBA Arms/MOABS-31 FALKEN WILDPEAK AT3W / 4.10's etc, 04 Kilimanjaro Edition loaded, plus 05 KJ limited

Clearance from top of the 31" tires to the underside of the flares is about 6.75". Will try removing the sway bar as I do get a 'clunk' when interference happens.

No,
measure "from middle of the wheel to bottom of the flare"
doing it that way tells how much lift you have, your way does not since different size tires mean different measurements
Thanks

_________________
MUDD'S MOTORSPORT'S We do IFS lift installs ,
03 OVERLAND EDITION /Kilby-Skidrow-Mopar-4XGuard skids/ 2.5 inch TOTAL CONTROL JBA coilovers -JBA Arms/MOABS-31 FALKEN WILDPEAK AT3W / 4.10's etc, 04 Kilimanjaro Edition loaded, plus 05 KJ limited