I checked the ejector pin and it works properly. I can put a case in there and the extractor will hold it.
I went to my local fun store and bought another brand of 223; they didn't have much that wasn't HP. I managed to get some Remington UMC 55gr FMJ. I will try this on my next range trip.
I also bought a 2 pack of A-Zoom snap caps; I had the exact same behavior:
1- Put 2 snap caps in the mag and insert mag on open bolt.
2- Push the bolt release
3- Pull charging handle, 1st round ejects
4- Drop the charging handle, 2nd rounds chambers.
5- Pull charging handle, bolt remains open on empty mag but the round is stuck in the chamber.
6- Pull charging handle and drop bolt a few time, the round finally ejects.
The rifle cannot even cycle properly with snap caps; it also ate their rims...
I don't know if AZOOM snap caps are cheap or anything, but both are heavily damaged from only 1 use (Well, one was just ejected and the second suffered more bolt ramming

). At 10$ for 2 the durability is kinda... crappy!