[rmc]

Doesn't hurt to ask?

A job offer is the whole packages things they give you (salary, benefit-in-kind) and things you give them/have to do (come into work every day, do what you're told in work, and any NDA/IP enforcement/non-compete). If one part of the package (non-compete) is something you don't like then you can and should ask them about changing it.

If they are accepting you working for them with no IP things in your contracter contract, then it's not impossible to imagine them accepting an employment contract with it. If they want to hire you then they might be more motivated. Likewise since you edited the contractor contract, you have already successfully raised the issue of outside work with them.