This is all good stuff. I did ask this question in the suspension
forum. Ya I know that bad to post two places. But here is a response from someone over there.
This is perfectly normal for a stock KYB
ICS setup. There is freeplay in the ICS spring (negative preload). When the cartridge is assembled, and short cycled (not bled) the rod will extend because the trapped air is an additional volume that is compressing and also taking this freeplay out of the ICS system. Once the cartridge is bled properly, the rod wil not extend because it can only move as far as the ICS spring will move the piston X the area ratio of the piston/rod (approx 9). In other words the small freeplay in the ICS system causes a larger freeplay in the damper
rod. If you shim the ICS spring to remove this freeplay, the rod will then extend fully. You can calculate this and verify it by looking how far the piston moves when you manually extend the rod fully after the spring is relaxed. Should be around 2.5 - 3 mm.
So is he taking about a different fork? Should the shaft extend fully all the way out on its own? Does your Grey extend out all the way on its own? I know you probably answer that above but just want to confirm.
Also it was mentioned you can shim by the piston to extend fully.