Change bike fit to reduce amount I "lift up" on my pedals
I would suggest that changing your bike fit to optimise the mechanics of riding a turbo trainer is somewhat cart-before-horse.
However to take it seriously for a moment, if you want the best possible bike fit for pulling up on the pedals on your trainer when the resistance goes up, this will probably involve substantially changing the current relationship between hip/shin/ankle etc. E.g. putting the upstroke of your pedal cycle where the downstroke currently is might do the trick. This may have... consequences for other, perhaps slightly higher priority, aspects of cycling.
I would not describe your issue as originating from poor bike fit or poor pedalling form. I would say it originates from doing something that you would never normally do in the course of riding a bike, and so that the solution is to... not do it (i.e., your option 2)