I installed a M1S LPK in a OLY maxhard lower a couple weekends ago and experienced exactly the same problem. I kicked myself hard because I didn't have the right size drill bits to clean out the holes in the lower and proceeded anyway.
When I placed the spring and plunger in the hole, the plunger was immediately stuck. I didn't know what to do and pushed it in further thinking that it might clear the obstruction. I couldn't think of how to get it out, without drilling it out. So, I decided to proceed more carefully with the remainder of the build and deal with the plunger later. However, I did put a couple drops of oil in the hole on top of the plunger.
When it became evident that the pivot pin detent hole was obstructed, I went to the hardware store and purchased a new hard metal drill bit of the correct size and drilled out the hole (there was a significant obstruction that I drilled through). Everything went very smoothly from there.
Somewhere in the middle of the process, after I came back from the hardware store, I noticed that the plunger had sprung free and was placing tension on the bolt catch release. The bolt catch release has seemed to work since, but I've been concerned that it may not be moving freely.
After reading your post this evening, I took the bolt catch release pin back out and inspected the plunger, spring and hole closely. The hole appears to be very smooth and free of any burs, and the spring and plunger seem to move freely. Frankly, I can't see why the plunger got stuck in the first place.
I must admit, after reading a number of posts regarding M1S LPK problems, and especially the problems with the bolt catch release, I'm a little aprehensive about the bolt catch release. I'll be firing the rilfe soon, so we'll see.
Good luck! I hope it frees up for you.