Don't know which you are talking about on the blast shield, the slot running fore and aft, or the oval slot parallel to the breech of the barrel? That last is what the blast shield is for, it is sacrificial and protects the frame from gas cutting. It is an expendable part intended to be replaced periodically.
What you believe is gas cutting on the barrel breech isn't. No doubt it came from the factory that way and you just haven't noticed before. Don't have any idea what the fitter had in mind, but it looks like file work. Typical erosion in this area is very slight and evenly radiused and extends 360 degrees around the circumference. Since gasses vent around the entire 360 degrees that erosion is invariably even all around instead of being localized as this is.
As to choice of powder, I realize, at least in the manuals, you can get very marginally higher velocity in the magnums with H-110/296 and Lil' Gun, but at the cost of increased wear to the gun in the form of erosion and gas-cutting. Unless you are loading absolute maximum loads, and I cannot imagine why in an aluminum alloy gun of any caliber, it just isn't worth the pain to do so. If you are hunting with this gun and feel a need for the slight, and it is very slight, additional velocity you can get with these propellants. You may gain 30-50 FPS, but is the extra wear to the gun worth it? 2400 will do everything these others will do within practical limits and is easier on your gun. It takes a little less, about 10%, powder to achieve virtually identical results, and 2400 is far more flexible than H-110/296, it can safely be loaded down to more moderate velocities if desired. Just a thought for you from someone who has been shooting the magnums for 50 years or so and has out-grown the perceived need to run everything at maximum level all the time.