MIMF

Went out in the shop today, went to sand the saw marks off a newly cut brace, and discovered that the height adjustment nut had stripped. Those of you who have had this happen, should I replace the screw also? It doesn't look damaged....

I would just change the nut. Often they are made from soft material, while screws get treated in a different manner

The 10-20 sanders had a run of screws that were out of spec 15 years or so back, so they stripped the threaded boss on the adjustment plate. For those sanders, swapping the threaded rod makes sense. For the 16-32, not so much.