As far as I know, the point of the setscrew is to keep the castle nut from coming loose to the point where the sight assembly can be mis-aligned with the bore. While it would be very unusual for the nut to loosen, the setscrew just means insurance.
Usually, the screw will be between the lugs on the nut, and need not be tightened to bear on the nut, (so no tension on the barrel) its just there so the nut can only move a little bit, IF it comes loose.
I might be wrong, and if I am, please, enlighten me.
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All else being equal (and it almost never is) bigger bullets tend to work better.
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