Strike/bolt don't fit

This might be the wrong place but I’m having an installation problem. The strike/bolt don’t fit in the door jam. The brass strike is too big. I tried skipping the brass strike and just putting in the silver part. However, the bolt is too long. Do I need to cut a deeper hole in the door jam to fit the entire brass strike and create the depth for the bolt?

What is the best way to do this? Recommended tools?