With bike on side stand and on a level surface oil is resting on the full mark of dip stick.
Putting extra oil (4 oz) in would this cause excess pressure internally and possibly blowing a seal?
It's not likely to blow a seal, but it may blow some oil out the vent if you overfill and then run it hard and hot.
I believe I'd go with the service manual recommendation, especially since it seems to be verified by your dipstick measurement. The reason for a different amount for service versus overhaul is pretty simple actually. When the trans or primary or other components are stripped down for overhaul, all the fluid is removed. When you just do a normal drain and fill during a service interval, you rarely get all the old oil out.
BTW, for the folks with a 2013 model Harley has once again changed the method for checking the trans fluid level. This is from the 2013 New Model Forum information:
"A change has been made to how transmission oil level is checked. Currently it is checked on the side stand with the dipstick resting on the threads. For 2013 it is still checked on the side stand, the change is to screw the dipstick in until the o-ring touches the case."
Jerry