If you have no clearance between barrel and rifle stock then I'd look at free floating the barrel.
Although you are 'resting' the stock on the rest, if the stock is touching the barrel then you are effectively also resting the barrel on the rest.
What 'front rest' did you use? (though I'm fairly sure it's not a SEB or a Farley).
What padding did the front rest have...any at all, hard, soft, etc?
How good is the trigger? Hard to pull, lots of travel, etc? Can you adjust it to be better?
What rifle? Ruger 10-22? (rough guess there).
That ammo should be fine, but .22 rimfire rifles are picky. But your targets suggest other problems before looking at ammo choice.
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