Car set at normal ride height (Green) suddenly there is a beep and all the ride height lights come on and the car is riding higher than normal

There could be a couple of problems, first and easiest is the rear height sensor became disconnected from its mount. This is common because the sponsor clips on by a kinda weak spring and can be easily disconnected.also where the sensor mounts is a small round metal ball that screws onto frame and rear suspension, the balls after time wear to the point that the sensor spring cannot hold on.there's also an adjustment on the lower mount, if you move it up the vehicle will lower....then you could have a concern with the air compressor vent not allowing it to vent down to ride height. Or the vent solenoid on top of each bag stuck also not allowing it to vent..to ck it yourself, go for a short ride around the block and when you come back park on a level surface, shut off car, exit and close door....listen for an auditable click in the rear, and front left corner of car and watch the distance between rite and wheel lip, see if it drops. If it does I would be leaning towards the simple adjustment...also check thr front ride height on level surface, if you have a suspension problem on 1side of the car and it sits lower,it will throw off rear ride height. ...

I guess I need to start by saying I am not a Corvette expert, and this may not be of much help. The folks who answer questions are all volunteers like me.
The C4 series Corvette which includes your model year came with two options. The FX3 option was a selective ride suspension control which used special shocks that a computer dialed to either standard or performance mode depending on the driver's choice and road conditions. The only thing different from cars without the option was the special shocks and some sensors.
The other option was Z07 which was adjustable or special suspension. The Z07 option was supposed to include special sway bars, springs, and wheels plus the FX3 package.
I'm not finding anything about a factory air suspension system. Thats not to say it did not exist. There are lots of aftermarket kits to put air bags on a Vette.
Normally, as long as the ride height is normal, a rough ride would be attributed to bad shocks or struts.
The FX3 system included a computer that did a self-check when you started the car. As long as you did not see a light saying Service SRS or SRC everything was ok. SRS in this case was for Special Ride or Sport Ride Suspension and SRC was for Service Ride Control. If the light stayed on the computer was scanned for trouble codes like the engine computer.
Do you know if the air ride is a factory install ?

First try disconnecting battery for half hour, is car still at normal ride height, it can be many things, but try battery it can reset car .

clock spring in steering wheel may need to be replaced.

The dealer should be happy to adjust your headlights to your satisfaction

take out ur glove box and there is a green wire u have to cut to make ur car stop reading air ride off. be carefull u cut the right wire

YOU COULD PUT AIR SHOCKS ON CAR.

jack up the car to where it is level on all four wheels and dis connect and re-connect the battery. this will reset the ride height.

there is a sensor that reads the ride height of the car, it is called the ride height sensor, have it tested, it may be defective or not hooked up, the linkage comes off this sensor on a regular basis.

you buy a car with all these electronics. ride hieght sensors for each wheel. this is affecting that. then when you go to the dealership you want them to replace only the exact one piece that fails. that could take hours of diagnosis time. at damn near 100 per hour. go ahead and give them the car. let them do diag. total price 2000. or you have narrowed it down to brains or sensor. do it yourself 1000. problem solved it should cost 1000-2000 to fix. if u find parts cheaper. money in your pocket