the allen key is between tyre and brace, not tyre and crown. what people mean by the crown (here) is the very bottom of the steerer tube
you’re right, the tyre can’t hit the brace but as the fork compresses the brace and tyre move upwards towards the crown. at full compression the brace will likely be above the level of the crown but that’s OK since the brace sits in front (or soemtimes behind) the crown. the tyre, on the other hand, is right under it.
If your chosen wheel and tyre has a bigger diameter than the fork was designed for then the tyre might foul the crown (or even the down tube). if it does, the wheel might stop dead and chuck you over the top, especially as this will be on a major compression so you’d be unbalanced
If you really want to know, try taking the spring (or air) out of the fork & see if you can get the tyre to make contact