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Probably, the front sight is too low, causing the rifle to shoot high.
Possibly someone cut the sight down for some reason.
About your only option is to get a higher front sight. This will lower the groups.
If the groups are then too low, simply file the front sight down a tiny bit at a time until it targets.
Gun Parts Corp is out of stock on Universal front sights. You might try Jack First Gun Parts.
It's possible a standard M1 Carbine front sight could have a hole drilled and tapped where the Universal sight has the set screw and it could be used on your rifle.
Another, less satisfactory repair would be to build up the sight blade with something like JB Weld or even by Tig welding it. After building it up, then shoot and file to get it on target.
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