I think I figured it out with a little help from my sailnet friends. As I suspected, it was indeed overfilled with oil. I'm not being too hard on myself, because "overfilling" means 0.27 qts, rather than the prescribed 0.26 qts! (really)
The engineer who designed the oil-level window should have fallen on his own sword by now, as that is the most useless, deceptive, piece of **** ever put on a marine product.
I removed the drain screw and bled oil while watching that window. Especially with new, clear oil, it is very difficult to see. ONce I saw it come into the "normal" range, I found that while mounted on the boat in the upright position (as the manual states) that merely rotating the engine through minimal normal steerage, will cause the oil level in that window to range from completely full to empty. Only when the motor is dead ahead will the level fall in the normal range.
Perhaps they assume we will all run with dirty, old oil, so that we may see the proper level when motoring straight ahead in a perfectly balanced dinghy??? :-/
Thanks for all your replies, and I hope my attempt at shedding humor on this frustrating situation hasn't ruined anyone's day.