PJB is the true expert on this and has covered your questions much better than I could. The instructions cover both ride heights and I can only assume that the mechanic matched your existing ride height and therefore put the spacer at the bottom. If, after your run you find it is still 85mm you may wish to ease it just a little more, say 3/4 to one turn to get it to 86mm.
Thanks PJB for the tip about the top damper mount. I must check mine.