Did you inspect your firing pin bushing and was it flush or protruding from the recoil shield? (Op's picture opened for me after I sent this and I see that it is recessed, and agree that is not correct, but still think that it is just as likely that it is an ammo issue)
After looking at my 17, 63 and 617, the firing pin and bushing on a 43c is different from that of other S&W rim fires. The former are identical to those in center fires, but are off center with the case head so that the round pin hits the rim and the bushing is visibly a separate part. The 43c's are centered with the case head, but the square pin is off center in the bushing so that that it contacts the case rim. The 43c's firing pin bushing should almost appear to be part of the shield.
The bushing on my 43c is flush with the shield, yet it still locks up with certain ammo because multiple rounds contact the shield. I believe that it is a combination of the rounds not inserting completely as the cylinder gets dirty and the base of the brass being slightly thicker with certain brands. I can shoot 150 rounds of Federal HV with no issue.