You are confusing a Woodcraft with a Fieldcraft. Yes, my 4 1/2" Fieldcraft has a flat sheath.
My Woodcraft has a carbon steel blade (3 3/4"), leather grommet handle.
When snugged into the sheath, about half of the handle is showing.
Gotcha!
bladegrinder
is right, the soaking and warming will shrink the leather up, but for a knife I would do it a bit differently. Since the handle is stacked leather, you'll want to wrap it as tightly as possible with a single layer of plastic wrap. You probably don't want to soak the leather handle but you also want as tight a fit as possible (if you don't mind the leather handle getting wet, then skip the plastic wrap). Soak the sheath in hot water until it is pliable. Slide the knife in and form the sheath with your fingers to the shape of the knife. If there are contours you want to form with great precision, or if you want a very tight fit, use a hard pointed object like an antler tip, the end of a wooden spoon, a capped Sharpie pen, etc. to accentuate the shape of the knife while it's in the sheath. When you're happy with the shape, leave the whole thing, in the sheath, in a warm place: Sunny windowsill, heating vent, near a woodburning stove, what have you, and wait. If you have a dog, keep it out of reach as a smelly wet sheath is a tempting toy! After it is thoroughly dry (I'm in dry Colorado and have forced air heating, so I only have to wait a few hours, your mileage will vary), pull the blade out and see how you like the retention.
If it is too tight, you can wrap the whole knife in plastic wrap and start over. The plastic wrap will create a slightly thicker profile and the knife will slide out more easily. You can also draw the knife out while the sheath is still damp or otherwise not completely done with the drying process and you'll loosen up the fit a bit. I've been able to do this repeatedly until I'm happy with my results. I did a Buck 110 sheath this way just last month. With a stainless blade and brass bolsters and Dymondwood slabs, it was just fine in the wet sheath for 24 hours.