Unless you have an EDM or Mill with a Carbide bits, working over the selector is not an option. It's heat treated deep and a standard set of bits will not even scratch the surface. But that’s not the problem at all. The problem is not the location of the detent stop, but the tip of the detent not being able to reach it.
The one area that you may have missed was the selector detent channel it's self. You may want to pull the pistol grip and check both the spring, and the detent channel. On the channel, make sure that the detent is able to fully ride up and not hindered by a bur on the first channel step cut. As the spring, it should be long enough, but a BB stacked under it in the grip will add more tension to the spring, then the detent to apply pressure to the detent.
P.S. Unless you plan on being able to pull the selector without pulling the grip, you can deepen the first step in the channel to allow the detent to ride higher in the receiver. I have used this trick, and flattened out the detent point to make the selector lock in solid without selector movement in any of the positions.
Hell, if you didn't want to deepen the detent first step in the receiver, you could always just chuck up the detent in a drill and spin file a little off the stop collar. This would allow the detent to ride up high enough to allow the tip to find the selectors detent in the channel.