the 17 to 20 axle is easily resolved with a sleeve done on a lathe. my front TZR125 wheel has a sleeve to bring down 17mm of the bearings to 15mm of the XT axle.
another option is to swap bearings, i often do it when i upgrade some older wheels. check the skf catalog, there might be 17mm bearing in the same external diameter as the one in the ktm wheel
same more or less for the swingarm, most likely you will need to turn some new spacers, but also maybe to machine the swingarm if it too wide externally or too narrow internaly. done such projects on other bikes but not on an xt.
not sure what skills you have in machinig parts, but make sure your mods are done in a safe way
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