alter table alter column causes huge log and data file growth

I have a table with 2.6B rows in it and I need to change a column from Char(1) to Varchar(64). the table is over 300GB with a few indexes. The column in nullable, so the transaction i'm running is:

ALTER TABLE XXXX ALTER COLUMN YYYYY varchar(64) NULL

I understand that this is a logged operation, so i pre-sized the transaction log to 300GB thinking it would be enough especially with log backups every 5 minutes to allow log space reuse. well the transaction log grew to 812GB before I had to cancel the transaction due to drive space issues.

I also experienced a very large increase in data file USED size which I don't know why that would be. data file used size came to right around 200GB (very minimal transactions are done in this DB so i know the increase is from this alter table command).

I have some questions:

1. Why would the data files experience an increase when just changing from char(1) to varchar(64)? I was under the impression that this should not change the amount of data stored unless that space is actually needed since its varchar. all existing values were either null or 1 byte since char(1) is the existing datatype, no existing data needed to be expanded.
2. While trying to figure out how to do this better, I came across this answer from Aaron Bertrand and it seems like it would work in my case as well. would this be a better way to accomplish this task?
3. this DB is in a 2 node synchronous commit AG and i noticed the redo_queue_size got to over 130GB, which means that the primary was sending log data at a faster pace than the secondary could apply them. This means that the log on the primary could not truncate when the log backups were completed. is this a normal behavior for something like this? is the alter column statement processed as one large transaction? if so that would explain why the log kept growing.