2 of 2 Solution
The best way I could think of to correct this was to dial it in level & mill about .006 off the whole mini chassis lug shelf (for reference the milled slot/step passing over action screw in picture is .024 deep).
To effectively bed this goofy recoil lug, it would require the bedding compound to be able to flow and bite into the shelf.
So I cut slots in the shelf for the bedding compound.
I also decided to extend the bedding out to include the entire forward portion of the action & first 3/8" of the barrel (smooth portion).
Rational for extending the bedding forward: I didn't really like that the action screw was so far in front of the chassis @ an unsupported location.
Ready for bedding.
Barreled action removed after bedding.
The lug was taped to provide clearance except for the bottom of the shelf and recoil face.
The barrel had 2 full wraps of electrical tape in front of the smooth portion & the groove between barrel and action was filled with clay. All bare metal parts were coated with release wax.
This is my first bedding job so it's not near as pretty as one done by LRI.
It is fully functional though.
The hammer forge imprint actually has .012 clearance to barrel and was just a place for excess bedding compound to escape.
The action is now supported all the way to the front including the first 3/8" of barrel.
As a bonus the front tapered face of the action forces the recoil lug back into solid contact when torquing the front action screw.
When bedding I torqued the action screws to 25 in lbs to ensure full contact was made with mini chassis.
It now contacts all 6 points of the chassis as it should have to begin with. Plus the additional support all the way to the front of the action.
As you can see the high spots on the mini chassis shelf milled .006 lower are still so close that they squeezed all the bedding compound out.
The bedding used was Pro Bed 2000. Single rifle kit. It's a very good kit that's only $16.00
This was a lot of effort on my part, but overall I'm really pleased with the rifle. It out shoots the test target that came with it.
Been able to print .5 moa both at 100 & 550 with Hornady 147 eldm or Prime 130 hybrids.
I've got the factory 2 stage trigger adjusted down to about 1.75 lb and Love it.
I do plan to change out the Arca rail for one of the weighted Area 419 rails so that it balances better on barricades. Shooting the Craft target drill revealed the need for better (forward) balance due to mid weight profile barrel.
Looking forward to doing some load development & see if it has a little room for improvement. I suspect it does.