How can absolute value of azimuth exceed distance from pole?
It turns out I was right when I thought I was wrong.

Consider the azimuth circle for 85 degrees elevation. It's very small. For example, 85 degrees elevation and 0 azimuth is only 10 degrees away from 85 degrees elevation and 180 azimuth.

Therefore, the azimuth circle for a given elevation is smaller than a great circle. It's only cosine(elevation) the size of a great circle.

At 35 degrees, the azimuth circle is cosine(35 degrees) = 0.819152 the size of a great circle, so 4.17 degrees in azimuth = 4.17 degrees * 0.819152 = right around 3.5 degrees on a great circle.