J.E.B.,
What I see in the photos is early bolt drop (peening before the approach) and a bolt head that needs material removed from the rear. The bolt contact should be centered in the approach, forward of center is livable, rear of center is not. More than likely, the mark on the far edge of the locking notch (tall side) was caused by the bolt riding high on the approach (main reason rear of center is bad, front of center still gives you a fully dropped bolt).
Probably all you need is a new hand. If lockup is happening after you reach full cock, the hand is too short. A correct length hand will have lockup and full cock occurring simultaneously. That being fixed, more than likely bolt drop should be close to correct.
I think a new hand may solve your problem.
The cam height could be reduced by about a 1/3 which would possibly remove the divot (not to mention give lots of insurance towards reliable ignition). Also, a smoother transition from hammer surface to cam surface (then polished) would add even more "insurance"!
Mike
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