Concrete slab insulation is in the way - cut it back for flooring?

by icewater   Last Updated August 13, 2019 22:21 PM - source

I have a converted garage built on a concrete slab. The slab is insulated with styrofoam panels which extend into the room about three inches, so the flooring does not go all the way to the interior wall.

Instead, there is a bulky, awkward drywall ledge built to cover the styrofoam insulation. Here is a pic of the ledge with a hole in it, exposing the framing and the styrofoam underneath:

I want to remove this ledge and install new flooring that extends all the way to the wall:

Is this possible / advisable?

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