I'm gonna adjust it a hair this week, but here's my question: the mag isn't hanging up on the mag release button. It's brushing up against the mag release on the other side. So if I loosen the button a hair, that will allow the latch to back off a hair so that the mag doesn't get caught up? Tightening the mag release button would draw the latch on the other side in further, which would increase the hang up?
The 3rd gen mag catch assembly is basically like threading a nut on a bolt, but in this case the nut (button) is held stationary (relative to the L/side of the frame), so the bolt (mag catch body) will be the part that's moving.
The mag catch body's catch shelf needs to be in the frame far enough to securely hold the mag, but not so far the shelf interferes with upward round movement (catching bullet noses), and not so far that depressing the button fails to release the magazine to fall free.
This is why S&W created that "eyeball" alignment method of looking at where the top of the plunger ought to be positioned, relative to the outside of the frame, when the plunger is fully captured up inside one of the two notches machined on the bottom of the button/nut.
If you decided to adjust the nut on the mag catch body post, you might make a careful note of how any half-turns you made, and in what direction ... so you'll know where to return the nut.
Or, just look at the top of the installed plunger next to the frame (captured by the nut, under spring tension), to see that it's flush with the frame, or slightly below.
I still suspect this "mag catch adjustment" might be chasing an unrelated "symptom", though.
It's not at all unusual for the bottom angle of the sharp pristine edge of the catch shelf to momentarily snag against the sharp R/upper edge of the magazine body. Some do it more than others, but normal repetition of inserting and seating magazines will "mate" the opposing contact surfaces.
I've lost count of the 1911 magazines I've used that do this very same thing in some of my 1911's ... until the upper edge of the new mags start to "wear" and round off the new edge a bit.