Still looks a bit tight, although the photo isn't the best.Ah ok. Sorry my photos don't really show the roof.
It slopes away from that edge. Has a raised lip on 3 edges and a drip edge on the 4th into a gutter. Hopefully that's ok
Sort the cladding first, the roof can be remedied if need be, but let's get the cladding sorted first.
Answer, take it off and redo it.
Not essential, but add breather membrane if you can, but with the battens it might bring the cladding out too much, Freddie's idea of a 6mm batten would minimise this (tip:use 6mm uPVC cover strips to hold the membrane in place)
You could also use a standard 25x38 batten in between each stud on the outside of the membrane to push it back into the shed to create a gap.
