Quill stem have a wedge to tighten it to the steerer tube. Sometimes loosening the bolt doesn’t free the wedge. It just raises the bolt head. You can test this buy loosening it and pushing the bolt head back down. If it doesn’t move a slight tap with a plastic/rubber hammer or tap a block of wood between the bolt and a steel hammer. you just want the loosened bolt to drop back down and did-engage the wedge. If you get it to move, taking the reflector off as suggested above will drop it a little more.
This exercise may not work. Or if it is close, you may need a shorter stem to bring the handlebars closer to you. You just want to see if you can enjoy this bike before spending money on a different one.
John