only thing that irked me when i was riding a smaller frame (54) for track was my saddle positioning. i ran a longer stem and more seatpost which was made it work, but compared to my 56 road frame with setback seatpost where the saddle is slung right back on the rails, i’d find myself tiring a lot quicker because i was seated more forward on the track. in saying that i had a 0 setback post which probably didnt help things.
Looks like the frame was a bit small for the previous owner, what with the massive stem and seatpost. I guess the only issues could be a) the saddle-bar-drop and b) your reach being a bit cramped, but it’s not like you’ll be on the bike for 4 hours at a time.