yes... it should during firing, go up against the breech face, however, there is nothing for the 223 cartridge to headspace on, if you pushed one past the extractor, you could get one trapped under the extractor, that would require removal of the extractor to remove the live round...
once fire formed, the case should headspace on the shoulder
BTW... do you know if he was annealing the case mouths before trying to form the cases ???
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