fx Impact mk1 valvestop has no effect anymore, hammerseat sits at 4.3mm?

Hi, I have a fx impact mk1 700mm in .22 sniper and I used to use the A20 Valve adjuster knob to finetune the optimal speed. Recently this has no effect anymore.
At 1 or full open 4 bars, it's all the same. I tested with reg pressure at 90 -> 140bar.
Hammer spring tension is 18.7mm, changed it higher and lower but turning the Valve adjuster does nothing.

I opened up everything and the only thing that is odd is that the hammerseat now sticks out 4.3mm where I think before is was at around 6mm.
Can this be the reason for the valve knob no longer having any effect?
How to solve this problem? Can I lengthen the C1 by unscrewing it somewhat to get back at the 6mm and locktite it at that position?

Thanks.