Ok, Got back from the range.
I am glad to say that the replacement sight did in deed work and worked well.
I sighted it in with the single dot floating right above the sight post and it was dead on with the first shot and held zero with repeated take off and back on.
The sight never lost function with 210 rounds of .223 Fed bulk ammo.
I can now trust it to run well on my 22LR upper later on.
I called my gun dealer and told him the good news and he was happy to hear of my findings. He will keep in touch with me to see if any other or same problems arise later. He will keep stocking the SightMarks as of now.
I still didn't like the blue tint keeping me from getting good hits out to 200yrds. It's like shooting with real dark sunglasses on. The dot is nice and bright but the tint on the hub is just too dark for a good sight picture out past 100 or so yards.
I will update if I run into some other problems down the road.