Way, way back, when Colt was the only one making the rifles, They made sure that the receiver extensions where thread indexed with the receivers so the receiver extensions would mate up correctly (FN does the same now).
Now a days, with all the different receiver and extension manufacturers on the market to build the rifle, and the fact that there is no mil spec for the thread indexing on the receivers or extensions, it not uncommon to have to face the end of the tube to get it to butt stock index correctly and the end the tube almost kiss the lip.
As for the U slot itself, still have mixed thoughts on it, since it does make the end of the tube weaker, but at the same time, for someone looking for a plug and play build (without having to do any fitting, hence 2 min rifle build), the added U slot does allow such.