My dog prefers a small crate that he has almost completely outgrown over the larger one that would be more comfortable. Is that a problem?

Ok so I have an 8 month old, approx 45-50lbs, decently tall mixed breed dog. We originally used a medium/large crate for him that stayed in my room, but he seems to be slightly outgrowing it. He still fits, he can turn around, stand up, all that, but I have noticed that his back does seem to rub a bit on the top of the crate and he isn’t able to really stretch out if he wanted to. I ended up buying him a large/XL crate, but it does not physically fit in my room like his old crate does.

I try to let him sleep on my bed most of the time, but sometimes he isn’t able to settle down for the night and tries to eat literally anything he can find. He also crawls under my bed at times if he doesn’t want to just go to sleep on my bed, which is literally less than a foot tall and he has to army crawl in and out which stresses me out so much lol. So sometimes we don’t really have a choice about putting him in his crate.

He doesn’t mind the crate in my room, and he never really had any issues with it from the first night he slept there. However, he does start whining if we put him in the larger crate in the living room. He will willingly go into the smaller one, but tries to avoid the larger one.

Now I’m unsure what exactly is the best thing to do for him. Either he is in a smaller space, but is happy, or he is in a larger space, and isn’t happy. I’m just worried that letting him choose the smaller crate might leave some kind of negative impact. Does anybody have any suggestions/advice on which would be best?