There is no way that it would sit so high, is there more to this story?
1. Are the original springs reused
2. Even if everything was tightened while on stands, it would not sit that high. This is a stance for no engine installed!
3. Are the springs indexed correctly in the lower control arm pocket. "End of coil relative the drain holes end of spring coil must cover all or part of one inspection hole. The other hole must be partially exposed or completely uncovered." (per GM Service Manual pg 3C-12 Front Suspension) Flat coil goes go into the frame (top)
5. Use of whatever a "red" GMC spindle is not a factor. These spindle have no effect on ride height. I am using the dual piston calipers, w/ S10 Spindles and there was no difference in my ride height.
6. Coil spring insulator GM# 15597425 (Rock Auto has them) come in only 1 thickness. What is a "thin spacer" and why would you use that?
6. With weight of car on the wheels, torque the pivot shaft nuts to 85 ft lbs. (per GM Service Manual pg 3C-14 Front Suspension) I bounced mine a few times to make sure the suspension had seated in its natural position prior to torquing the nuts.
I think i covered most of the items to look at. Hope this helps.
Good Luck