Have you measured the diameter of the 'bulge'?
Often brass is manufactured under size and when fired in a correctly sized chamber dimension a bulge will appear as pictured.
Lets have some diameter measurements... A fired case measuring .470" - .471" is perfectly normal and will look quite bulged if it measures .466" - .467" before firing. I have seen Winchester brass as small as .465".
I think resolved the issue. I spoke to a Weatherby gunsmith and just as guntech and c-fbmi suggested, to measure the diameters of the fired casings at the bulge point. Also to take measurements at other points as well such as the shoulder and neck. They also suggested to take measurements on any other ammo I have (Remy) and to inspect those cases as well.
Lo and behold. The winchester unfired at the bulge area is 0.463" and fired is 0.469". The unfired case measures the same as the go gauge, however at the shoulder narrower at 0.452" unfired and 0.455 fired. The neck diameter is 0.343 fired.
Had to go digging, but found some Remy fired from that rifle. New in bulge area = 0.465" and fired is 0.468". The fired shoulder is about eh same as the winchester, but the neck is 0.346". That's 0.008" greater diameter. This means that the angle of the shoulder is greater on the win casings, therefore they will stretch further into the chamber when fired.
To verify this, I used a .38 special casing as my guide and inserted a GO, NOGO, win unfired, win fired and rem fired into the casing. Using that as my reference, I measured the overall length for each and was astounded. the Win new measured the same as the GO. The NOGO was 0.004" longer than the GO. Which was expected. The Remy fired was the same length as the NOGO. The win averaged 0.002" longer than the fired Remy length and the near ruptured case measured 0.004" longer than the Remy.
This means that the Win fired case (near split) stretched 0.008" overall.
The issue: at this time, I think is the ammo. Thin casing walls and smaller/shorter neck diameter means that these particular shells really are not matched well to the chamber and due to the greater angle of the shoulder, are allowed to stretch into my chamber in addition to the rearward stretching when fired. This kind of makes sense as to why the Remy casing or a few of my loaded casings did not show this kind of stress.
The rest of this ammo is destined to be shot out of the M14.
Thanks guys for your insights, rest assured, my rifle is fine. Besides, I started looking for a replacement and it was going to be hard.