It's hard to imagine the headset cover going any lower. Seriously, I've tried to get it lower! Plus, Henry's videos show the headset cover nearly flush with the frame before the handlebar cover is placed and tightened down to compress the assembly. Possibly it could happen but here I run into a possible LBS mistake. It seems they cut the steerer tube so that it is exactly flush with the top of the handlebars, whilst most everything I've seen shows the top of the steerer tube about 3mm below. This is with the maximum number of spacers so I can't add any in order to raise the bars. Did they mess up?
Confirmed the bearer ring is at the bottom of the fork steerer.
Hygge showed me a short video of the c-ring/headset cover interface that shows the c-ring in black like mine. However, their headset cover appears to be slightly different. I've reached out again today and will probably get an answer tonight.
Thanks for your help!
Just like @TidyDinosaur wrote, your LBS didn't cut the steerer correctly! Your LBS is BS because they should have warned you about something's wrong and advise you on possible problem/solution and not let you leave the store with your head in the sack!
They are either incompetent or utterly lazy!
As already advised, you can put regular round headset spacer and top cap and try if everything compresses.
The only other thing I would suspect is that compression ring measures too thick. Hygge changes small parts like underwear, probably depending on where they can source them. They are not certainly producing them. We've seen different spacers, compression plugs, seat clamps, handlebars etc. so it would not surprise me if they changed something. Although in the end all those parts should be compatible on different bikes...
Personally, I would return the bike to your LBS and ask them to do the job properly. You paid for it probably so it's their job.
Just take your time, everything will be solved in the end, just don't force anything so you don't damage the frame. Soon you'll be enjoying riding the bike and be perfectly satisfied.
