I dialed up the mic signal just a little bit - about a quarter turn - and it made a world of difference in perceived tonal improvement/change when engaging the blend slider. Interestingly, while increasing the blend made for a more full and better tone for fingerstyle the change for strumming was less noticeable.
Additionally, the percussive tapping on the top sounded much better with the blend slider dialed all the way out. The more mic was blended in the more tubby the sound became while with the mic dialed complete out the percussive tapping was defined and crisp.
This presents a challenge for me on the one song I use percussive tapping on the intro and outro - 50 Ways To Leave Your Lover - as I segue immediately from tapping to fingerstyle playing!
Here is a brief instructional YouTube video from LR Baggs where they talk about proper mic adjusting with the screw:
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