A "mil-spec" AK should shoot anywhere from 2 to 5 MOA on average. While 5 MOA isn't desirable, it isn't uncommon or unheard of. The action of the AK is very violent and it causes some "whip" or "flex" in the barrel, even when its cold and this degrades accuracy. As the barrel heats up, this is exacerbated and accruacy suffers accordingly. Barrel heat could explain your accuracy degredation. AK's don't really loose thier "zero". AK's don't have windage adjustible rear-sights, windage can only be changed from the front sight. The front sight is usually very stiff and doesn't like to be moved with the special vice-like tool, let alone recoil. Its possible the rear-sight could have loosened because of recoil, which would also degrade accuracy. If you were firing rapidly, the barrel would heat up and recoil forces would be excessive enough to loosen up the
sight. AK's typically have some "play" in the rear sight and this can be exacerbated by recoil forces over time, but this usually isn't an issue and can be fixed if desired. Replacing a barrel on an AK is much more involved than replacing a barrel on an AR. Adding a heavier barrel would reduce the the barrel "flex" and decrease the effect of heat on accuracy. It wouldn't be difficult to locate an HBAR for an AK, but installing it would be a pain. Personally, I don't think it would be worth the time. AK's are not "match" weapons, they are minute-of-asshole, and even at 6 MOA your weapon is capable of "defensive" accuracy. There was nothing done to mitigate the effects of heat on the AK at the design level in an attempt to discourage soldiers from wasting ammunition.
Another possiblity is bad/different ammunition, though you didn't really elaborate on this. My opinion is that everything seems normal....I believe your AK heated up from firing and your groups swelled accoridngly.