#8 max - means that CC terminals are small and won't accept a thicker cable. They don't care about length, they expect you to run the numbers and stay close to battery. Max #8 on a 40A controller shows stupidity of engineer, IMO. Luckily, you won't run 40A.
You could still run a thicker #6 or #4 spliced to a short piece of #8. Or trim #6 to thinner diameter on the stripped 3/4" length that goes into the terminal.
I wouldn't expect issues with controller running in a bedroom closet, though this would be pushing the limits in hot weather. With 300W solar it will likely run under 14A most of the time. Don't place it close to the ceiling though, and keep some clearance on the sides. There could also be an issue with accessing it, in the closet. I mounted mine on the wall under the bedroom closet, where the closet ends above the night table. Not too aesthetically pleasing, but safe and convenient.