Santa Cruz Chameleon tire and wheel choice
I assume by 'hybrid tire' you mean a wide slick or semi-slick suitable for street use. You can fit any tire that is not too narrow for the rim, and not so large it interferes with the frame. The rims are 40mm so anything above 1.75" will work (although putting a narrow tire on this bike is not necessarily recommended). The stock tires are 3" but you would not want to go above that for street use.

As the bike has disc brakes you can swap the wheels out for smaller diameter ones. Going to ISO 599 rims will drop the bike 12.5mm in addition to whatever effective wheel diameter reduction you get by fitting smaller width tires.

I won't question why you want 26" wheels, but I will question why you'd buy a new bike then swap out a expensive major component ... err, well, I guess 26" wheel XC mountain bikes are not really available any more, but then have to consider if you'll have a hard time finding 26" disc brake MTB wheels (unless you wanna have a set built of course).