Is my Fastrack crossing gate broken?

Yes that is normal, I suspect it is the limitation of the mechanism that raises and lowers the gates. The flashing lights, ringing bell, and raising and lowering gates all work "approximate" to the real life couterpart, what you want is exact.

Actually, prototype crossing gates have adjustments to limit the "up" position so that long gates do not foul overhead obstructions such as the wires of a pole line.  Not all of them raise to the 85 or 90 degree position.

My 1950s crossing gate and 1970s crossing gate start out at about 80 degrees to the horizontal, go to full level horizontal then raise back to 80 degrees after the train passes.  This is on insulated tubular track at about 15 volts.  A little graphite on the plunger assembly and the cross axle works wonders.  I am also experimenting with a new lube called Dupont Dry Lubricant mentioned in a recent OGR.  It is a liquid and is working on keeping couplers shut.