You've run through all the test you can and found your answer, barrel link is not fitted properly. If the pistol was a new, recent purchase, I'd contact the seller and have a chat. They're probably not going to do anything for you, other then tell you to shoot round nose rounds, but you never know. Be calm and don't flip out, explain the problem and let them decide if they want to keep you as a customer.
This is a testament for "you get what you pay for." Companies that can build these pistols in this price range have to cut corners to keep costs down. They do this with materials used and more so on the machining end. When they finally find their cutters, bits, reamers etc. are so out of spec that the firearms barely function they replace just what they have to. This is why your buddies pistol function fine and yours is, for lack of a better term, 'loose as a goose'. The fix through a smith is going to be cost prohibitive, good money after bad money.
You can use lighter grain bullets, just not SWC. Would suggest you go to Campro or Berry round nose they should cycle and will save you a few bucks. If you want to stick with lead look at Bullet Barns offering in a round nose, just order 100 pcs. to try them out.