Thanks for the replies!
The empty ATC trailer (3642lbs) with the proper hitch receptacle height still has the suspension on the bump stop when the trailer is empty,
my 2015 Suburban (1/2 ton w. 5.3) will not hit the bump stop unless the trailer is loaded and then only on bumps.
After research I should have gotten a Max tow package but unfortunately not avail on AT4 or Denali,
pretty sure the issue is from the cheap off road shocks and the springs.
I incorrectly assumed the truck would have more towing capacity in the suspension than a half ton 5.3 Suburban
My dealer has agreed to take the truck back in trade so it looks like my choices are:
1) Keep the AT4 and look at a load leveling hitch, air bags, shocks, springs or a combination of those
2) Get a Denali and hope the Denali's adaptive ride shocks will adjust enough with the trailer to keep it off the bump stops
3) Get a SLT with a max tow package (will lose the color matched bumpers and quite a few other features) and cost is the sam
4) Get a 2019 2500 which is more money, not as user friendly around town, harsher ride and more $$
I have to do something pretty quick to take advantage of the dealer's generous offer to take the truck back