I'd verify the selector works first by manually cycling the bolt to ensure it's depressing the trip when set in semi. If it's not disconnecting, you may have a worn trip, or trip contact surface on your bolt
Sten magazines are very sensitive to feed angle......too little and the rounds will nose-dive into the bbl. as shown in your picture.....I believe the correct angle is 8-9 degrees
link to SAR article on adjusting them:
https://www.smallarmsreview.com/display.article.cfm?idarticles=1974
a few pics that might help:
Finally.....use hot ammo.....mine would runaway with 115gr value pack stuff...….loved Winchester Q4318 124gr NATO and anything hotter.
Don't use reloads unless you full length resize the cases
If that doesn't help, try it with an original (non suppressed) bbl......see if that helps.....I'm noticing that the bbl in your pic isn't quite flush with the face of the trunnion...….