I noticed that 2 short M3 spacers were included with the new shorter M.2 extender card. I figured out that they are intended to be placed in between the M.2 adapter and heatsink, to fix this issue. Unfortunately, the additional support needs to be located in between the m.2 adapter and mainboard, so the M3 spacers would be too long to fit in that location.
So, I didn’t use them and applied the method I suggested to @MarkS, with the M.2 adapter being located midway on the mounting screws (standoff’s threads to others).
With a little care, the M.2 adapter can safely hang midway on the threads of the standoff. It doesn’t need to bottom out on the mainboard and shouldn’t.
A few nylon washers would do the job of ensuring that there is adequate room between the main board and M.2 adapter. Of course, the most ideal solution would be to increase the height of the threaded inserts on the M.2 adapter. But, I suspect that those are only available in the standard height that is being implemented.
Just remembered that the standoff threads are only 10 mm long, so they barely reach into the heatsink. I would also suggest lengthening the threads to 12 mm (same length of the M2.5 screws that I used.)
Hope this helps @Songworks and others.