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SUBMIT YOUR IDEASpatials are deceptively special. 😥
Not fully match with the provided answer.
Took about a year to process all the grid locations every time but finally got it sorted.
Also not fully aligned but happy enough with it
Get hint from @AkimasaKajitani and learned about "Clip to Polygons" feature in the "Make Grid" tool.
It was long to run and i wonder why the nearest tool is not that flexible in the calibration..