I am not sure what this pin is circled (extractor pin?) but when I shoot my gun, this pin creeps up a LOT. Is that a problem? Normal? If not, what do I need to do to fix it?

Thank you.

Im not sure but i think that pin holds the extractor in place.

That pin should not be walking at all, get it to an armorer, gunsmith or back to S&W to get fixed.

Interesting. Mine are in there rock solid. Do you have to punch it back down? It shouldn't move at all.

No. When it works its way up, it pushes right back down easily with a punch or screwdriver. No force at all.

It is the piviot pin that holds the extractor in place, you might be able to just replace it to see if it will be better retained or use a little tiny dap of lock tight to help it stay put. There is a tiny spring behind the extractor, take care not to lose it or damage it!

I've seen that happen before...

Fix it quick. Don't shoot it again until you do...