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The cyclocross tyre rule only applies to UCI ranked races, which in the UK is predominantly National Trophy Elite and Junior races, and the National Championships in the same four categories. So if you want to run 35c (or larger) for Summercross, it's not a problem and I very much doubt you'll notice any real difference in performance.
On the second point, I've no idea, but Vittoria don't do a 37c width Terreno Dry, so it's either a 35c or a 38c.
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Does anyone know why the 35c tyres are marked as 37-622? They certainly inflate wider than 35mm
All terreno tyres come up wider in my experience and real measurements are closer to the ETRTO figures (depending on rim inner width). The 38c come up to 40mm I think.
I ride 33c mix in winter and 35c dry in summer, I don't race mind you, but the increase in volume is the biggest benefit there when the ground is hard and rutted, allowing lower pressure and more control, considering going to 38c at the front this summer.
I would assume cornering and control are slightly sharper with narrower tyres where the casing deforms less, assuming all other parameters are the same. So much of a muchness of a response, I suppose you need to find what works best for you (rider weight/tyre pressure might be the biggest factor)
I’ve got some Terreno Drys in size 35c x 700, they’re also marked as 37-622.