I thought that you needed to go + rather than - for front focusing (e.g. +10)? I guess you tried it both ways though and confirmed it didn't work? The manual isn't very clear?
Anyway, I have the same setup, GX20 and Sigma 17-70mm and can confirm there are no compatibility issues with them. I did update the GX20 to firmware 1.01 before I took any pictures with it so it's possible that fixed something?
The first thing you need to prove is whether the problem is with your camera or lens. If they tested the lens with other Pentax cameras (which presumably they know are ok) then that would suggest the problem is with your GX20. Just because your kit lens works ok with it doesn't prove anything - that may be faulty as well. Do you have a third lens you can test the camera with?
Sorry I can't be anymore help but there are plenty of camera nerds

on here so you should get a good answer soon