Another brand of ammo that works very well in my shooter Lugers is PMC 115gr FMJ. They are inexpensive and available in many places. Don't be surprised to see that same scuffing on the brass of other brands....pretty common.
Have you broken this Luger down and given it a thorough cleaning and lubing? That includes removing the extractor and spring and a good cleaning of the extractor channel. Also remove the firing pin, spring, and retainer and give the channel a good cleaning.
These "old girls" like to be kept clean and lubed.
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