The trend these days is toward shorter crank arms for a given inseam. But if not perfect, what I've read is, too long arms, even a little, is bad for the knees, but a little too short is fine.

172.5 is long for 30" inseam. I'm same and use 170. But these days, 165 or even 160 can work for 30". Why did you switch to 160?

I agree with raise the seat. Don't just raise a couple millimeters; Raise it up until your leg is straight with your foot level on the pedal at the bottom. Even try a bit higher; If you are rocking your hips to reach the pedals, that is too high, so back it down a bit. I personally have the saddle as high as possible, without having to rock my hips, that is much easier on my knees. On climbs, I never mash the pedals when seated; I'll climb standing in a gear where cadence is not high, but more like 50-60 rpm, and not needing to yank on the handlebars, but just use my weight on the pedals, that is very efficient. When I run out of wheaties, standing, I shift down into granny gear and grind my way up. Tire there or cramp in the calf, I get off and walk the bike, it stretches out the calves. All are easy on the knees. Mashing hard when seated, and especially saddle too low, that's what causes the knee pain, often.

Also, moving the seat fore/aft will require changing the height setting. Aft is further from the pedals so may require down a bit. Forward is closer to pedals so may require up a bit.