NEVER believe the spec paper that comes with ANY Asian lathe!!! I think they are all printed the same,and just stuck in with any lathe. The same goes with the poop sheet with a chuck. You really got unlucky! a 1/8" too high tailstock is just out of the ball park!!
I still have my 1986 16" x 42" Grizzly. But,back then,they were made in Taiwan. Now,you have to pay a LOT extra for a model made there. Other wise you get mainland Chinese. The quality control is very poor,and they will send you a lathe full of sand if they feel like it. I can't really blame them,as they get nearly nothing for their work. But,you end up on the short end of the stick. The real problem is Americans wanting something for as low a price as they can get. Try pricing a Standard Modern lathe made in North America.
Grizzly WILL send you a replacement for a really faulty part,but tailstocks need to be made to fit the lathe they are going on.
Their Chinese lathes also have TOO SOFT steel in some parts. I have seen wrecked rack gears,and a wrecked gear that ran in the rack. ACTUAL BENT OVER TEETH both on the rack and the rack gear! My friend Jon's Grizzly lathe had that happen. He now wants to only use that lathe for polishing gun barrels,and buy another lathe for turning.
Jon knows how to use a lathe,too. He worked with me in our Tool Maker's Shop in Williamsburg for MANY years. He is a master craftsman in his own right.