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It's a trial and error fix. obviously when you tighten the bottom hinge it's pulling the door closer to the jamb. Try a thin piece of cardboard or a business card or two between the hinge and jamb. at the bottom. The cardboard will act as a shim. See if that fixes it. If not try the cardboard between the hinge and jamb at the top. It may take few times to get it right. Also, you could sand as you stated. Just be careful you don't want to take to much off you could mess up your seal.
Good luck with the fix.
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