Sitting lower relative to the Ground = Yes
Sitting lower relative to the Cranks & Bottom Bracket = No*
-
Considering that Saddle Height is about the Saddle to Bottom Bracket relationship, MTB suspension sag is totally irrelevant in all but a few rare cases. Most common full suspension bikes have a fixed Saddle to BB relationship (notably ignoring dropper use).
-
If you are using a URT suspension design (where the BB actually changes position relative to the saddle), then yes, there can be a sag related issue. But as we covered in a similar comment recently, these URT bikes are all very old with nothing notable new in the recent decade. It’s essentially a non-issue unless someone is using a classic retro bike for whatever reason.
-
But in the vast majority of cases with any modern bike, sag has no impact on proper saddle height setup.