Matt
I don't think you will get an optical type scale that will fit in the space available.
I have a WM16 and fitted this type from Arceurotrade (I had already fitted them to the X & Y axiis):
**LINK**
I used the 150mm one and cut it to fit.. The display that comes with them is no better than the one already fitted to the mill, but you can mount it in a better place.
I actually replaced the displays with an Android tablet using the TouchDRO app (https://www.touchdro.com/) and a homemade interface circuit.
Photos are in my album 'Mill DRO'.
If you want an optical scale to match an existing DRO system, I have taken a couple of photos of the smallest one that Warco do (100mm travel). You could make up some brackets to mount it in front of the existing readout.
Stuart
Edited By Stuart Smith 5 on 22/05/2023 00:10:22