Here's a couple theories that can be useful for anyone shooting steel in their M305's.
As steel is not as malleable as brass it can tend to split when trying to expand in the slightly larger chambers of these battle rifles.
Another reason could be, combined with the stretching, possibly weaker steel in those cases. As the case expands it sticks to the chamber walls to create a seal and if the steel doesn't retract enough, it can be "stickier" than brass. So as the bolt unlocks, it cams the "sticky" case out of the chamber and the weak or stretched steel is giving out at the web.
The face full of powder is the residual pressure in the barrel, even though that bullet is long gone, there's still lots of pressure until that case is extracted. If this was an overpressure or detonation, I think the outcome would have been worse.
This is purely theoretical.
Personally I'm not a straight steel ammo fan, just personal preference!
I do trust brass flashed or copper washed steel though, as this adds lubricity to the steel to function more reliably.