Yes, sorry, GAC is granular activated carbon. It is not perfect, but does some good in pulling out contaminants and clearing the water. Poly Filter is also good at pulling out some bad stuff from the water.
If the fish have learned to enjoy that algae, that is a good thing. That it is growing only on that rock suggests (does not prove) that the rock contains some stored phosphate which will leach away over time assuming the tank is fairly clean which I suspect is true.
You said above that some of your sticks went pale over time. Assuming all else (temp, ALK, salinity) is stable -- and this is not related to contaminants -- then low nutrient is my next best guess. Including standard error ranges with test kits, low numbers can mean nearly 0 availability.
1) Get a Hanna measure on phosphate. Those cuvettes must be spotless without finger smudges.
2) Nitrate... Red Sea is my favorite.. but honestly I have not discovered the best kit for nitrates yet. What is your kit? Or LFS kit?