That's what I was about to remark on. That's way, way too small. Something's wrong with the measurement or you got a bad part that needs to be replaced.
You do see the Lee .223 somewhere stamped just above the threads on the die body, do you not?
Here's another picture of mine. I got my good micrometer out and made more precise measurements. The fat spot should only be about one thousandth smaller than the bullets measure. If yours is actually .208" at the wide spot, that's your problem right there.