Used/2014 Grey Wolf 26DBH - Insulation in AC vents

Well, that's a first for me. Never seen that before.

Time to get creative with some sheet styrofoam and duck tape, it seems. If you can't shift the ducting, that's the only choice other than dropping the ceiling.

You MIGHT get luck by bringing it to the attention of a dealer who sells grey wolf. Even though out of warranty, you might get lucky as it's obviously a misbuild or bad product quality.