I figure my Nitecore 18350 is compressed way less than 1mm, so perhaps I'm safe.
Using your test, the battery definitely protrudes above the rear lip of the battery tube. That's why I increased the reach of the battery tube by shimming the front end. It also makes it possible to use the 18650 battery tube which suffers from the same problem (i.e. the driver board is glued in place 1-2mm too deep for either battery tube to reach it).
I just read elsewhere that Banggood has realized this is an issue from numerous buyer complaints and is working on a fix. From a business standpoint, mailing out some 2mm thick front-end retaining rings is a lot cheaper than replacing the same number of battery tubes having longer threads on the head end.