I'm punting. There's no way I'm getting to the climax I had in mind in the wordcount I'm allowed. So. I am going to fall back, revise things so that a different conflict that I ducked in the interests of this not turning into a novella becomes the focus, and write that story instead.
And change the title. Since I won't be using that bit of the plot just now.
Then I can write the novelette the length it needs to be, and not short the ending. That'll give me more time for the Dwarf, anyway.