I don't think 160mm is too short.
My main commuter rig is a Trek CrossRip Elite 2014 52.5cm frame. I'm 5'5" with a 30.5" inseam measured barefoot bottom to taint. The Rip came with 170mm cranks. I've ridden it many many miles since 2014, and I use to constantly battle with knee issues. I would try different seat height, seat fore/aft, seat tilt, cleat positions, stem lengths, bar heights, and really focus on making consistant straight and high cadence pedal strokes. Every time I made a change, my knees would feel better for a while, but eventually start bugging me, and I never felt like the bike fit.
After watching a GCN video, I got the idea to try a shorter crank length about 1 month ago. It changed my relationship to the Rip. I love the way it feels again. Knee issues are gone. I was able to raise my seat and set it back and really feel centered and balanced like never before. The added bonus of extra clearance has reduced pedal strikes on fast sharp corners and I can just pedal through. I run full fenders during half the year and there is no longer wheel/pedal cross which just made it safer and more agile. I don't use power, but I ride a fixed route in to work each day and another fixed route on the way home, and my average times have gotten faster.
Fortunately, my Rip has a square taper bottom bracket so it was easy to find a 5 bolt 160mm BCD-110 crankset. I'm struggling to find a 160mm in a Shimano-style crankset for my Priority Apollo (170mm BCD-130) but I'm considering just converting it to any combination of bottom bracket/Gates cog/crank arm that gives me the same awesome fit.
If you have the money, or a loaner part from a friend, try a shorter length. Heck, try a longer length if you want. Just don't be like me and wait 8+ years to experiment :)