I think I'd consider removing that row of smaller tiles near the two floors' junction, grind down the existing stuff into a ramp so that when you installed new tile there, the edges at the transition were flush. It's a fairly small area, and, while dusty, a diamond cup wheel could probably make quick work of it. That would assume you have some spare tile you can use as you'll probably destroy that row when removing them.
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Jim DeBruycker
Not a pro, multiple Schluter Workshops (Schluterville and 2013 and 2014 at Schluter Headquarters), Mapei Training 2014, Laticrete Workshop 2014, Custom Building Products Workshop 2015, and Longtime Forum Participant.
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