I opted for the quickest fix - I raised the height of the offending steering mirror using a 0.25" shim. In the long term, we can get a taller post machined. After raising the mirror height, I then checked the DC centering of the spot on the DC PD using a scope.

Looking at the performance of the X arm ASS, I no longer see the strange oscillatory behaviour I described in my previous post . Moreover, the TRX level was ~1 before be raising the steering mirror - but it is now ~1.2. So we were certainly losing some power.