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Wow, you don't see the Ti versions around. Lovely, indeed.

Had once a chance to buy an unridden 1993 Karakoram very cheap, bought, then didn't ride it for a year, as it was too mint. Ended up selling it for the same 50 Euro to a GT enthusiast (and am still happy he was happy), then buying way more beaten similar bike/s since.
Lesson learned is, just ride it, it was meant to be ridden.
The Klein is beautiful, btw.

Bike looks great with those tires, indeed!
Might be stating the obvious here, but for 110BCD, there is the early 90s cranksets (M650 suggested, or M730 XT, or M550 LX, maybe even more in lower tier components). They all used to go with 122,5mm long axle, you would probably be changing the bottom bracket anyway to make it work (current cranset uses IIRC something like 113mm, may work on the outer position, may aswell be hitting the chainstays). Octalink is not great. Possible to go 110BCD with current HT II compact road cranksets, best if you had a way to try if it doesn't hit the chainstays before buying one.

It seems to me these were all really small! If anyone's tempted, it is cheaper on RB, and I mean, 115 posted is such a bargain, pity family members whom it would fit sizewise won't appreciate another 40yo ATB :)) https://www.retrobike.co.uk/threads/early-overbury%E2%80%99s-wildcat-1980s-fillet-brazed-frame-set-price-drop.479990/

It's been moved to ebay from classifieds on here, looks really lovely: https://www.lfgss.com/conversations/395630

You got FC-M563, the same looking 110BCD ones are FC-M560 - I think they were only produced for a year in 1993 when people still thought MTBs need 46 tooth chainrings.
Agreed that MT60s are even better looking. M550s are very similar to MT60, but with horrible chainrings.

5x110 BCD and nice is M730 (XT), MT60 (DX), M550 (LX) - all for 122,5mm axle originally.
Then M560 (not 56x, 563 is same looking, but 5x94 BCD) for narrower axle and if you prefer black one.

Then I think STX-RC (FC-MC40) looks similar style to what you pictured and should be 4x104 BCD. There is more of these, late 90s were 5x94 or 4x104.

Looks great,
personally would just go through winter with fenders and gripshifts and rebuild in spring.
If looking for a new wheelset, 8-10/11? speed wheelsets are the same, so could be used in the 1x conversion. 7speedfreehub body is narrower (35 vs 40mm), 7sp cassette can be used on 8-10sp freehub body with a spacer, not the other way round.
Shifter gear ratio for the RD is the same for any Shimano MTB mechs 7-9sp and Shimano road 7-10sp except 4700, so even drops would work. Anything might be easier than finding good quality 3x7 shifters to combine with Vs, it is thumbies almost exclusively, so the 8sp suggestion is great.
-sorry if any is obvious.

Your bike is the alu version with carbon fork, right?

Can it be one of the frames that used smaller front wheel in small sizes to avoid toe overlap?

It is the Hubbub alternate cable routing, if I remember correctly. Should work, never tried, without that the 0.3 difference is a bit too much I think.
https://hubbub.bike/hubbubs-original-shimergo-solution/

Looks great, and Shimergo on this bike feels just right. How would it go with discs, though? (I'm probably overlooking something.)

I suppose there are brake bosses for chainstay mounted u-brake? At least the cable guides suggest so.
Would be very unusual combination if the head tube really was 1 1/8".
Nice frame, really.

Should be FC-M730 cranks, with 5x110 bcd.