Why does coupling of α-naphthol take place at δ-position (para to $\ce{-OH}$) rather than the β-position (ortho to $\ce{-OH}$)?
In the case of β-naphthol, we consider the aromaticity of the entire compound to decide the position.
Aromaticity is not disturbed even when the attack takes place at the ortho position. So I don't find any reason for the diazo compound to not attack there.