You show a picture with a snap cap held to the breech face of the breech block by the extractor. I don't think it should be tipped down like that as if there were a high spot on the breech face. I'll try to remember to take a look at mine tonight. I'm not sure from the picture where you have a ding, but if I look at mine it will refresh my memory of what it looks like.
BTW: For functioning tests you should use a dummy with the correct weight. The snap caps you have are too light to function properly and are only meant to cushion the firing pin.
The Luger is sensitive to overall length of the cartridge and a bit sensitive to the bullet ogive. That could be a possible cause for the bullet ogive hanging on the upper edge of the chamber mouth. You might try different ammo.
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