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Hi-
Yes that is what I meant. As I pull back on the charging handle, it stops right before I am able to rotate it up into the recess.
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Does the cocking handle rotate outward fully perpendicular to the cocking tube?
How much more does it need to go before it can be rotated into the notch?
Have you fully stripped the weapon and lubed it? What sort of a buffer system does it have in the buttstock? This is what the bolt carrier slams into when fired. You may want to post some pics of your buffer and recoil spring.
You may try firing it first to see if it might loosen up, assuming it will allow you to strip a round off the magazine.
I'd contact whomever you purchased it from about exchanging it before taking any other action to modify things. About the only thing that could be done is to shorten the cocking handle support the amount needed to allow the handle to swing up into the recess.