Fine tuning is a story that is nice to tell but that with modern LLMs makes less and less sense. Modern LLMs are so powerful that they are able to few shot learn complicated things, so a strong prompt and augmenting the generation (given the massive context window of Qwen3.5, too) is usually the best option available. There are models for which fine tuning is great, like image models: there with LoRa you can get good…
Fine-tuning still makes sense for cost/latency-sensitive applications. Massive context windows drastically slow down generation, and modern models' performance and instruction following ability relies heavily on a reasoning step that can consume orders of magnitude more tokens than the actual response (depending on the application), while a fine-tuned model can skip/significantly reduce that step.
Using the large model to generate synthetic data offline with the techniques you mentioned, then fine-tuning the small model on it, is an underrated technique.