Well, after all was said and done, my vendor (who has been beyond great to work with) gave me a choice to have them return this guitar and send me yet another/third new (same make/model and color) guitar, return this guitar for a full refund and buy a completely different guitar, or send me a replacement tuner and a new set of strings, or refund me 10% of the purchase price and I still keep this guitar in hand with no effect on warranty etc. (All shipping has been free.)
Since I love this guitar (for many reasons including - and ESPECIALLY - the tone, looks, neck fit to my hand and overall feel) and because I was already looking into changing all the tuners to a locking style, I opted to take the 10% refund and order a set of PRS Vintage Style Locking Tuners. The intonation and action on this guitar is dead on and the string saddles are in the middle-ish range of their travel as you can see in the pic below.
Perfect. Could not be happier (other than for that aggravating tuner).
If anyone has a better replacement locking tuner I should consider please let me know?