Could be.

Does it look 'used' yet?

Maybe you can return it in exchange for a different size?

If nothing else I'd let the vendor know what it's doing that maybe it shouldn't be doing.

That 'tool-free adjustment' collar thing looks a lot like the tripod leg adjusters I'm more familiar with. There may be an element under the collar that's designed to add 'stiction' when the ring's tightened. If the element's not quite right you won't get enough friction to hold the inner shaft tight.