I have a room finished in painted 1/4" wood paneling with studs behind it. I want to replace that with drywall. My concern is that the door jamb and attached trim currently fit flush with the wood paneling. Attached is a photo of the existing door jamb and trim. My question is related to, but slightly different than this question. Solutions that I took from that post include:
extending the jamb. Would I pry off the trim where I have indicated in the attached photo,rip a piece of 1/4" wood to extend the jamb, and then remount the trim?
crush the drywall at the end and insert it under the door trim. Use caulk or mud as needed to make the drywall uniform where it is visible coming out at the end of the trim.
The second option sounds like the easiest and seems like it could end up looking good, but looking for guidance from those who have encountered this situation before. Should I do one of these or something completely different?

