I stopped the print and bent it back into place and could see the extruder tip lower as I did it. This appears to be a very critical setting yet its easy to bend it. I then decided to run a calibration test, which I could only ever get it to pass once before. Miraculously it passed first time with equal numbers across all three test points +175 each. The target in the documentation is +240 but it showed calibrate success. But I've learned that isn't always worth trusting.
Everything appeared to be working good so I stopped the print and then loaded a new file for the vertical blind clip I created and ran that print and it came out nearly perfect.
Overall I'm very happy with the response I got from XYZ Printing. It did cost me shipping to California but that's better than no replacement at all. They were very responsive via email and they shipped the extruder back to me via Fedex so I go it quicker. I can continue to recommend this excellent printer at an unbelieveable price when compared to the competition.