What key(s) are involved, wonder if I can help you decide what to start with then. Looks like it starts in C#minor (E major) and then goes to Eb major I think? hard to tell unless i actually transcribe it. so pretty much no matter how you go about it you might get some slightly unfun arrangements. Let me think for a bit here.
Disregarding capo limits and stuff for now I could possibly see the following keys to try as possible solutions (assuming that I am right on the key change that is!)
Start in F (Dmin) and go to E major. This could possibly work in drop D tuning as well because of the verses keys. (this is also capo 1 which is pretty reasonable) This seems to work pretty well considering some of the first few chords in the verse (with holding the A chord). This would probably be my best first instict because it would allow for some decent fuller chords later on during the chorus (assuming that the chorus does what most songs do like a 1-4-5 pattern or something).
Use the original key instead of any capo. Maybe not the best option as still several flat chord are hard to play along with melody lines but instead arrange where mostly the bass notes are played along with the melody line instead of a very full sound.
C major (a minor) to B major as you wrote it. Still has its own problems here as you already noted but not a horrible option.
If you have a rolling capo, simply move the capo directly before (and after) the chorus sections to match the key change. This means just moving the capo by 1 before and back down 1 after the chorus. Ive seen this done in some of animelodes1 arrangements (not that Im a big fan of this method personally). However, this could mean that you could put them both in a very nice key which is quite pleasant for an arranger (but maybe not the performer).
These are all the options that come to mind here at the moment.
Not sure if that was even helpful but I think options 1 and 2 are pretty good if you want to try a different way to go about it. Hope this helps!