New Thimble Install into Old Chimney and Combustible Clearances

[ctyankee]

Hi and thanks for this fantastic resource! Newbie to wood stoves. I have an old masonry chimney I'd like to bring back on line. I had a Sweep take a look and he was fairly discouraging about the practicality. The wall in photo is very combustible with wood sheathing , lath, some sort of primitive insulation. The hole is close to ceiling and window. The clay tiles are scarred, damaged, so relining is a given. 8" flue (7" ID) so relining may be a challenge. I understand the tiles can be broken out. Although it seems these tiles may be mortared securely to the brick. I would be moving the electric lines. From photos, is it reasonable to bring a new install up to code? Thanks for any insight.