Mobile Fidelity StudioDeck Setup Issue

I am stumped.

Setting up my Mobile Fidelity StudioDeck +M I followed the manual instruction's exactly. Even watched the Audio Advice video on this (it's very good). I’ve set up many turntables over the years, so I’m no stranger to the process. Nonetheless, something odd is going on with the tonearm height.

After adjusting the counterweight as instructed. Seating the platter as instructed and making sure the anti-skate was set correctly, I tried to play a record. But couldn’t because the tonearm doesn’t lower less than about one inch above the record. I triple-checked the cue/lift lever, it was down (released). Checked the VTA and the tonearm was at the lowest setting. Looked for something that might be blocking the tonearm from lowering to platter level and all I could find is it was resting on the cue/lift shelf which was in its lowered position. I am out ideas how to fix this.

Suggestions welcome.