I would say that you are correct.so I am thinking the barrel doesn't like the plastic ATI upper. Going to put it in a PSA upper and see
I bought a Chiappa 22lr upper years ago and accuracy was nothing to brag about with the M4 hand guards and polymer receiver. The accuracy went way up once I switched to an aluminum receiver and a free float hand guard. The upper while not as accurate as my home built upper with a CMMG 16" heavy barrel or my Savage MkII, it is as accurate or more than my best Marlin Model 70 and Romanian M69.