Installer usually has no problem fiddling around with Boot Drive partitions and formatting. Unsolvable problems in that area would give you "No drives available for Install", rather than "Not enough space".
Even when you install from a Bootable USB-stick, the first part of the Install process is to copy all the files to the destination drive.
It is possible Apple did not calculate the recommendations properly, assuming your had an ADDITIONAL 35GB available AFTER the download was copied onto the drive. Or perhaps since you are booting form a USB-stick, you need to follow the LARGE-sized recommendation, the 44.5 GB size.