Just to add on. I drove vehicle last night and indeed the low beam headlights were pointed more upwards so I could better see the road ahead. So the annoying blinking AFS light is gone away and the low beam headlights actually light up the road. I’m glad to have this working properly now.
The only open question in my mind now is if the headlights are properly aligned and if I skipped a calibration step with the new sensor. If anyone knows if there is a special calibration step when you replace the axle height sensor, please chime in.