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I had my Dillon .223 die shortened very slightly as I had the same issues as you are detailing. At the time I just put it down to the fact that I was using a 550 progressive press and the tolerances were a little out.
Since that was done no worries
Note: Not a good idead to give a Dillon Carbide Full length sizing .223 die to your mate to tickle up 5 thou off on the lathe WITHOUT telling him its Carbide. Apparently it wrecks the tools or something.
I am no lathe expert but lathe tooling is far from cheap.I have more money in tooling and inserts than the cost of the lathe
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