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Yeah, it should expand just the mouth and just barely enough for the bullet to sit inside the case. I haven't measured it, but I would guess the bullet might sit down inside the case by about 0.05" or so. A tiny bit deeper might be OK though. You just don't want the sharp edges of the case mouth to be shaving off the soft bullet as it gets seated later.
You should definitely have more neck tension than what you are telling us you have. It really sounds like your sizing die is not compressing the brass enough. Either the brass is very thin or your sizing die is not made properly.
I don't think loose neck tension itself would cause a squib alone. When you have your squibs, is it ever on your very first shot? I assume you are loading up a cylinder full (5 or 6) and firing them? Is the very first one a squib? Have you tried loading up just one round in the chamber and firing it and then loading up another and firing it etc?
What I'm getting at is PERHAPS the neck tension is allowing the bullets to become unseated under recoil. The first one goes off fine. But the bullets pull out partially due to recoil. So the next round might have the bullet barely seated. And the next round, the bullet isn't seated at all. So youpull the trigger on the 3rd round, the primer goes off, but the powder sort of burns a little bit with just enough oomph to get stuck in the barrel.
Whatever is causing the problem needs to be fixed. Find a different brand of brass. Or borrow a different sizing die.
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