I ended up getting one of Palmetto's rifle kits that had a nitride middy 16" upper. I slapped the upper on a PSA lower that I found on sale and kept the LPK for another build/day.
I put a NiB BCG in there and it was passing all the function checks. I got it out to the range yesterday and put a full 30 round PMAG in with the BCG locked back. I sent it home with the bolt catch. I went to fire and the hammer dropped...but the round didn't go off.
It was a little difficult to extract but I eventually got it. The next round chambered, fired, etc. just fine. A few times I had the same scenario where it seemed like the BCG wasn't fully going into battery. Sometimes I was able to get it the rest of the way there with the forward assist, other times I would just have to extract the round. Sometimes extraction was tough too.
It seemed to be most prevalent on the first round of a new magazine. When I got it home, I cleaned it up a bit and cycled some non live test rounds. Same issue...when I drop the bolt catch, the BCG doesn't always make it all the way into battery. Manually cycling the action resulted in it happening quite frequently.
I swapped out the NiB BCG for the one that came in the upper and it seemed to be a little better but still wasn't 100%.
I thought it might be too much tension on the extractor and it was having troubles getting over the rim...but with two BCGs having the same issue, it seems less likely.
Maybe the chamber is tight? The only other thing I can think of is that the action spring is weak because it seemed to have the most issues with a fully loaded magazine.