Ignatius, yes it was like that when I received it. It wasn't new.
Thankfully, I figured it out. First, I wanted to separate the two discs on the connector to see what that would reveal. I had to loosen a set screw. That didn't help my issue, but that is the step you need to take to remove the "reversible 3/8" to 1/4" head screw".
Anyway, I could see that there were 3 metal tangs (pic 1) inside the connector that the post was hitting, preventing the connector from going onto the post completely. I also saw that the bottom (silver) ring was marked "Ground Level" with a padlock symbol next to it (pic 2). Apparently, the Ground Level lock unlocks the connector from the post! (The post has to be removed to lower the tripod head to ground level). That ring should be labeled as the Post Lock, if you ask me!
After fiddling with it, I realized that the lock was stuck. With considerable effort, I loosened it. That means, I had to hold the short, black section while I turned the silver ring. It didn't seem to help because it actually shortened the black section. But, I finally looked inside and saw that the metal tangs had retracted (pic 3)! That allowed the post to sit lower, in the correct position. Turning the silver ring in the opposite direction extends the tangs, which lock into the slot of the post (pic 4). It's a slick design once you realize how to use it.