I adjusted the overtravel, requires removing the action from stock... once out it was obvious that there can be no dragging of the sear no matter what the overtravel is set at. There is an intermediate link between the trigger and the firing pin, sort of like there are two sears. When the trigger releases the "intermediate" link it is spring loaded to snap away from the firing pin. Trigger cannot raise this link to make it touch the firing pin after firing, so no way for it to drag.
I disassembled the bolt, it was spotless and perfectly finished inside. No dragging or friction on anything I can feel.
I believe the headspace is excessive. I have no way to measure it, but I put assorted cases in the gun and used a cleaning rod to push the case back against the ejector spring. Cases fired from the rifle were tight, new cases had just enough play that I could feel it. I put the same cases in another rifle that is known good and the fired cases from the rifle in question made the bolt tight to close. Sized cases had less play than in the suspect rifle. So the headspace is more than another rifle, but who knows how much more or if it is too much.
I hate saying what it is since it doesn't matter and people are biased. But it's a cz557. The barrel is shouldered on the action to set headspace so if that is the problem it's not a quick fix. I'll hopefully hear from cz today.
Since I figured out how to post pictures, here are the bolt pieces: