This has been a common problem with late M1As. You may have to use (carefully) a Dremel tool and a rotary file or grinder and cut that notch in the receiver a little bit on the top side. The alternative is to trim the lug on the op rod a bit, but I would prefer to cut the notch and leave as much on the op rod as possible to give it guidance in movement. Don't use a lot of force, as you can break the lug off the op rod.
Jim
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