If it were me I’d start with a new front sight post, even if it were 10 MOA off, that’s a measurement on a post that probably isn’t discernible to the human eye without something to compare it to. Maybe. With PSA pricing it’s plausible that it’s just an out of spec post? I think they may even make taller ones for this specific instance.
Edit: a shorter post. Seems like 20” uses a shorter post. I’m willing to bed that since a majority of PSAs upper are 16” carbines they bought one kind of post and used it on all since they’re all Fmarked.
https://retrorifles.com/m16a2-m4-squ...short-or-tall/
Then I’d send it back if it bugs you that much. I personally wouldn’t take it apart until PSA looks at it incase that voids a warranty or something.