.LAZ file will not align with open street map in QGIS 3.28.7

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I downloaded a point cloud file of a region in the UK as a .LAZ from the Defra Survey Data download site and have converted it to an OSGB36 EPSG 4277 CRS. I wanted to underlaylay an OSM of the same area, so imported an OSM layer and also set it the same CRS. The Project CRS is also set to the same. I was expecting the two layers to overlap, however they are very far off. I wondered what I was not doing correctly and what else I should do to get these two layers to align? Thank you.

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