Here's what it looks like when I used your "larger circle" as the size pick for the ArrayGem Command. (I also Arrayed the circle to show how it is sizing it along the path.)
Just a note - you may possibly run into problems with ArrayGem if you have a large sized object and a path that has tight bends that make it squiggle around a lot in between where each item should be placed.
The method that is used to converge on a solution can possibly get sort of stuck in one of the squiggles in cases like that.
So for ArrayGem your path curve should try to kind of generally resemble the placement of the items and not have a bunch of extra little wiggles and bends in it that are much tighter than the bounding size.