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it is supposed to be adjusted to meet the top of the shell holder
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Nope, the only one adjusted to be just off the shell holder is the sizing/decaping die. Even with the full length resizing/decaping die you have to be careful not to get it too far down and push the case shoulder out of spec on rifle cases.
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I'd normally agree with you, but this appears to be a Lee FCD for a straight-walled pistol cartridge. It has a carbide ring in the bottom that is supposed to post size any earlier mistakes. You can see the floating crimp ring in his second picture.
I don't think it's stuck in the crimp ring, I think it's stuck in the carbide. If he took the die out of the press and tapped it upside down on the workbench the crimp ring might just come out.