In this paper, we introduce a multi-talker distant automatic speech recognition (DASR) system we designed for the DASR task 1 of the CHiME-8 challenge. Our system performs speaker counting, diarization, and ASR. It handles various recording conditions, from diner parties to professional meetings and from two to eight speakers. We perform diarization first, followed by speech enhancement, and then ASR as the challenge baseline. However, we introduced several key refinements. First, we derived a powerful speaker diarization relying on end-to-end speaker diarization with vector clustering (EEND-VC), multi-channel speaker counting using enhanced embeddings from EEND-VC, and target-speaker voice activity detection (TS-VAD). For speech enhancement, we introduced a novel microphone selection rule to better select the most relevant microphones among the distributed microphones and investigated improvements to beamforming. Finally, for ASR, we developed several models exploiting Whisper and WavLM speech foundation models. We present the results we submitted to the challenge and updated results we obtained afterward. Our strongest system achieves a 63% relative macro tcpWER improvement over the baseline and outperforms the challenge best results on the NOTSOFAR-1 meeting evaluation data among geometry-independent systems.