Sorry to hear about your gun. I have 3 of Dave's guns and 1 built by Jeff. My K gun from Dave has given me some issues with ejection over the last 3 years, but manageable. My 40 and SD have been perfect. Oddly, when I got my MP5 build from Jeff, I couldn't pull my charging handle back while the mag was inserted. Jeff said the receiver was out of spec because I used a Special Weapons rolled receiver for my build, but I believe he actually pinched the area of the receiver near the trunnion during the welding process or maybe that just how the rolled receiver was when I got it from Black-Market-Parts. Either way, I ended up fixing the problem myself and the same issue you're having are long gone.
If you insert a mag and pull back the charging handle, does it feel as if there is some resistance in the CH? If so, it might be the rails of the receiver not having enough clearance for the BCG to travel freely down the rails. You don't need to replace the front end to fix it either.
Just so I'm clear, Jeff is a good man and I would definitely do more business with him, but I think the second he sees a Todd Bailey part, he thinks it all out of spec. I wouldn't have replaced the BCG and just FYI the retaining plate uses a modify Gen 1 plate.