When I bought a house I put up a shed on my side of the fence between my neighbors and my property. Not a cheap prefab shed but one designed to be permanent.
15 years later neighbor wanted to replace fence and said my shed encroached on his property by one and 1/2 inches and I needed to move it.
I seriously considered adverse possession cause the shed was attached to concrete pilings and attached with lag bolts before the floor was put in.
It was a serious pita to move
I watched a shed being moved 5 ft...They winched it and got rid of one nasty encroachement. I’m surprised the Towwn lt you put a shed on line...most have say 3’ to 10’ setbacks.