Lets say you have a 7i, 37 inches, 62* lie angle

You add 1/2 inch, now it is 37.5 inches and 62*...........the 1/2 inch made it the same length as the 6 iron which the 6i has a lie angle of 61.5*

So if the iron fit before you added 1/2 inch, then to keep it fitted you need to flatten the lie angle 1/2 degree.

bending the club upright has nothing to do with compensating for a .5 inch longer shaft, if you were compensating for a longer shaft then you would flatten the lie angle.

bending the club upright to compensate for shaft length, would be for a shorter shaft, not a longer shaft

However, when you talk standard lie angle and shaft length..........there is no such thing between sets

So if the standard lie angle of your previous 7i  was 62* and the standard lie angle of the proposed 7i is 61*, then yes you would need to increase the lie angle 1*.

What is the standard lie angle and shaft length of your current set?

What is the standard lie angle and shaft length of the proposed set?

I am with you Quintin, if a standard lie fits you with standard length, at 1/2" over standard you must go flatter, likely 1 degree.  the only way to be certain is to hit off a scuff board.  Dynamic fittings sometimes refute static fittings.

I don't know how adding 1/2 inch gets you to hit the ball in the center of the face, I can see how it would get the club level at impact. To show this you need to be hitting off a lie board, and checking the marks on the sole of the club. If the marks on the sole of the club are toward the toe, then the club is flat, adding length as explained above, or bending upright will fix this, whichever is more comfortable for you.

However, the fitter should have taken a minute and bent the club 1* upright, then let you hit it and see.

Please come back and tell us what a Titleist fitter says.