The wear doesn't look particularly extensive. Doug's tip about lubricating the interface certainly can't hurt.
Talk about peening! I had a 90s Stainless Luger for a while. When it arrived, there was enough metal displaced in the same area to present a "lip" that had been upset towards the inside of the frame. A few licks of a file took it back down to flush.
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"... Liberty is the seed and soil, the air and light, the dew and rain of progress, love and joy."-- Robert Greene Ingersoll 1894
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