those tires are 32" and should fit on a stock suspension 1996-2002 4WD 4Runner. probably the PO lowered the 4Runner.
measure the distance from the center of the hub to the bottom of the fender flare. it should be at least 20 inches at the front and 20.5" at the rear.
Rubbing is normal with 265/70/17 and stock suspension. Same thing happened on my 99 almost 7 years ago. At the time I was running the stock 2wd springs.
I have a 1997 with 350k on it (stock coils up front) and picked up some 265 70 17 on 17" TJ rims. Didn't have a single issue.
Also upgraded my stock wheels from 265 70 16 to 265 75 16 and am not having any rubbing.
No suspension mods (yet). NOt sure why you would rub.
Just measured my stock 2WD with 266k (hub center to bottom of flare), just a hair under 20" front and 20.25" rear.I've always thought so too. I guess the coils have too much sag or were replaced with 2WD coils