Did you try sliding the battery holder around the cage bolts? It has to go in at a certain angle, but once you do that it goes all the way to the bottom. The ribbon string will allow you to pull it out for maintenance. If your seat post is still too long, cutting it isn't a big deal. It's just like cutting a fork steerer. Also I believe the R088 uses the same shape seat post as the SL8, there are quite a few aftermarket seat post on AliEx if you just want to get a shorter one and avoid cutting.
Ya, it definitely needs that particular screw backed out to allow it down further. I even held the bike angled to let gravity pull the battery holder away from the bolt, no help. Got a tip to check Ace hardware for bolts/screws.
I noticed you wrote bottle cage screws before... Maybe it was a mistype, but it's the FD screws further down causing the issue (the bottle cage screws are a different, bigger size). Can't take an adequate picture inside the frame with my camera for obvious reasons, but you can easily see it looking down the frame. The bottle cage screws don't protrude (at least with my frame) but the FD plate screws do; you can see them go into the frame void in the last 3 or so mm of travel. So if I can get an M2.5 screw that's about 10mm, that'd be the optimal screw for this frame.
Also I should add that I took out the top bottle cage screw and it made no difference to insertion depth. Also used a paperclip through that hole to try to guide the battery holder away and down, no help.