Isnt the stipulation that the Imam must be in front of the congregation and the prayer performed in the Kabah contradictory?

As each principle has an exception, why shouldnt this one have one also? In the Haram-us Sharif, the believers who have filled the vicinity of Baytullah (Kabah) can perform their prayer by facing the Kabah from where they stand and can follow the Imam in prayer. However, the congregation that stand for the prayer from where the Imam also stands cannot come nearer to the Kabah more than the Imam can. In other words, they cannot stand for the prayer if they pass the Imam in position. Therefore, here also the principle of not passing the Imam in prayer is partially in force. However, this stipulation cannot be generalized for all the sides of the Kabah.

For this reason, those who circumambulate the Kabah looks at the Imam, before starting the prayer; if they are near the Imam, they try not to pass him and try to stay behind him. They abstain from approaching the Kabah more than the Imam. This is because there must not be congregation between the Imam and the Kabah.

There is information about this matter in Halebi and other fiqh-Islamic Jurisprudence books.

In Halebi, it is stated that in Kabah, it permissible to perform prayer, whether obligatory or supererogatory. Here, there is no stipulation of side. Prayers can be performed by standing on any known side.