Not sure if the bottom of the bolt is dragging the round slightly out of the magazine. My explanation is probably not great as I’m new to this platform. The round maybe moves forward a 1/4” out of the magazine. Will do as suggested. I will take some pictures if problem persists. Do you think the o-ring on extractor spring could cause a issue?
I understand about being new. I've been there myself and if I want to keep increasing my knowledge, I must remain new.
Knowing the correct language when asking for and giving help is essential for clear communications. But the only way to learn it is to jump into the conversation with both feet. You're off to a good start.
The bolt not catching the rim and closing on an empty chamber is a sign of short stroking.
The bolt pushing the cartridge partially out of the mag and riding up over the base of the cartridge (Bolt Over Base) and jamming the cartridge in the action is a symptom of weak extraction. What happens is the extractor loses control of the empty and the ejector cannot eject the case. For the ejector to work, the extractor has to hold the case head firmly against the bolt face and compress the ejector. The loose case interferes with the BCG as it attempts to feed a fresh round from the mag and lock into battery.
The only way the bolt can push the cartridge out of the magazine enough to jam it into the action is if the bolt travels rearward enough to catch the rim. The loose empty impedes the feeding of the fresh cartridge causing a bolt over base malfunction.
If the bolt doesn't travel far enough to catch the rim, it'll simply glide along the cartridge without pushing it out. There is like a ridge on the bottom of the BCG that keeps the round pressed down until there's enough rearward travel for the bolt to catch the rim. Therefore, short stroking is unlikely to cause a bolt over base.
O rings were used because the original extractor spring used in the M4 soon proved to be inadequate. Colt redesigned the spring, but the military refused to approve it because that meant adding another number to the system. While the "Big Army" dragged their feet in approving the much needed new spring, Crane came up with the addition of the O ring as an interim solution. It was used long enough it picked up a good bit of institutional inertia. Extractor springs that need an O ring to function reliably need to be replaced.
In my experience, there is only one extractor springs that can be trusted- Colt. I've had only one Colt spring fail and that's because I damaged it during installation.
I've never used Sprinco springs, but they come highly recommended by the late Will Larson, who was a very knowledgeable and experienced armorer. I had the privilege of attending one of his AR armorer's courses.
Getting back to extractor springs- Only one maker of ARs I know of uses Colt springs. That's Colt. The only two makers of ARs that I know of uses Sprinco extractor springs. That's Sionics and SOLGW. The extractor spring of nearly every other brand is suspect and should be replaced. (I don't include KAC in this category. I don't know what spring they use, but I've never seen or heard of KAC ARs having problems with extraction.)
Using an O ring with a Colt or Sprinco spring can exert too much pressure on the extractor impeding it from snapping over the rim of the cartridge.