As a follow up, I ended up taking a "hybrid" approach (Hate that term these days). Anyway, I called 2 dealers and both agreed that the barrel adjustments for this amount of play were fine. They made sure to state to be sure to leave 2-3mm play and adjust with the motor off. I also consulted the 690 manual since it does talk about adjusting the throttle. It calls out the barrel adjustments but it also talks about the KTM diag computer.
I did the adjustments at the adjusters and after a day on the trail and time in the city, all is well. The bike ran great but I will bring it up to the tech during my 1st service (300 miles from now) to make sure all is good.