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There are different settings for the various powered ammo.

Correct, but 3" mags don't really cycle light 2¾" loads.

All the info we have is what you give us. You said "Cleaned and oiled.", is that a detail strip on the entire gun just some parts?
 
I would take the stock off and clean up the action spring. Also, the mag tube spring and mag tube and friction rings a should not have any old oil on them. Clean very well and take a look at the bearing surface of the brass frictions, they can sometimes get scratched up. Sand them lightly with 2000 grit and some oil. Make sure mag tube and friction rings are cleaned very well and apply light oil. If that doesn’t help, replace action spring and mag tube spring
 
With 2 &3/4 inch guns with a failure to eject properly I always cleaned the mag tube and greased it with a light grease plus a bit of G96 Gun Treatment and made sure the friction rings were set correctly. The same with magnums except they sometime still do not work with lighter loads...
 
The gun is 2-3/4” only.
I removed the action spring and found gummy residue on the “piston”. Cleaned it up and now it works like a charm.
Thanks to all you experts I now am a happy gun owner once again.
 
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