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In trying to insulate and frame my basement, my sheetrock sticks out a bit too far and is being hit by my door latch. What're my options for trying to resolve this? Somehow recess the area? Add a large strike plate?

I'm looking to add some laminate flooring to my basement, and prior to doing so, need to level out a spot that funneled down to a drain. I've attached some photos for some context & perspective. In my research, I've come across: Self-leveling concrete Thinset But have no experience with...