The handlebar control does often appear that way John, the indicator not tracking exactly the markings, but not faulty as such.
The adjustment can be reset as that on brakes can, by shortening the inner cable a bit. It's a fiddly job though. You have to undo the adjuster completely so that it comes free of the thread first. Then undo the tiny screw in the center of the transparent changer cover and lift off the cover. You then see where the inner cable winds round the pulley wheel inside, finally turning into the centre where it's locked into a brass boss by a clamping screw.
If you tackle this adjustment, before doing anything else be prepared for it all to spring apart as you pull up the cable and pulley, so note carefully the direction that the wire is wound round the pulley, the amount of the turn around it, and the way the brass boss is inserted.
Once you've released the inner cable from that pulley and withdrawn the brass boss, you can undo the lock screw and push the cable a little further through by the amount that your need to reset it for the adjuster to have a two way range. Then lock the screw and cut off the protuding inner cable end bit. Then after re-assembling in the way it came apart you'll have more adjustment available.
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