Well, you did buy a NM modified gas cylinder assembly..... so here goes:
We used to anneal the front band and then bend up the tabs to retain that hand guard (nice and tight) so that the hand guard would be pulled UP into the crown of the front band. Many of us had NM (read : super fat) barrels by Krieger , Hart, Obermyer, Douglas, etc, etc) and often the factory/ current configuration of those hand guard tabs would conflict with the barrel shoulders; and that's why they are bent Upwards as you have discovered.
So take an 8" bastard file and shave that interior (My favourite approach) of the hand guard until you get a PRESS fit into that front band with the bent up hand guard tabs.
Depending on which builder you speak to, some people will say, file the lower portion of the hand guard nose. Some people press fit right away. Some people re-shape that front of the hand guard, and that's what I do. YMMV... different strokes for different folks.
Again, depending on whose advice you follow, we even glued that hand guard right INTO the front band. All depends on what outcome you want for this rifle project or competition or matches or final purpose. It's all about YOUR game.
In the past we ensured that at least 1/16" of clearance between the hand guard and the stock, so quite often I passed a file under the handguard to relieve and create some space.
Have a look at the hand guard clip at the rear of the hand guard; one of our favourite moves was to GLUE/ Resin/ JB Weld that hand guard clip TO the hand guard so that the clip kept the hand guard high off (as high as we can possibly make it)
Again, it all depends on what you want to do with this platform. Today I'm no longer competing with an M14 in any of my shooting games so I don't do all this work anymore on say my current 2007 Norc receiver with USGI love on there! Yeah, my hand guard rattles because it's a teaching platform and I need to illustrate/demonstrate to folks at my clinics what a REAL USGI hand guard fits like and rattles like. This is my fond memory of competing with TRW, HR, Winnie, and SA USGI M14 rifles from the 80's.
Enjoy all this fun guys! It's like LEGO for us shooters!
Cheer all!
Barney