By default, the linker scripts include settings for a 128-KB device. Please configure the custom linker script of fixed stack OTA bootloadable project to 256 kB device. The steps are elaborated in section: A.5 Configuring Fixed Stack OTA Projects for Other Cypress BLE Devices.
Please let me know if it helps.
Thanks I missed that nuance. Shouldn't PSoC Creator have known or let me know that I was compiling both projects with a scripts for the wrong sized device? It's also odd that error message suggested too little memory, not too much. So I would not have even guessed this was the problem.