OP, I very much doubt that your problem relates to the ammo. Even with cheap bulk ammo almost any half decent .22 should be able to group around 1" @ 50yds. Both of my Savage MKIIs will easily group tighter than that. The advantage of higher quality SV ammo is usually more evident at longer ranges.
It's either you, the optical system or the rifle. I'd suggest analyzing each potential problem separately:
1. Let a friend who is a fairly good shot try the rifle. If he can achieve reasonable groups with the same set-up it's you. In that case, study your technique and practice.
2. Check the scope mountings and the parallax adjustment (if you have one.) If that doesn't help, try another scope. BTW, the Bushnell rimfire scopes are pretty good. There's no reason why you shouldn't be able to shoot accurately @50 yds unless the scope is actually defective. Sometimes it can be hard to detect defective scopes. (I had one once that gave erratic results. One day I turned it on its side in a certain way and the windage turret literally fell out.) But trying a different scope will determine that.
3. If (1) and (2) don't solve the problem it's got to be the rifle. If there's no obvious sign of bullet deformation when you chamber/unchamber a round, and you can see no defects in the crown or rifling it's probably just one of those dud guns that roll off the line infrequently. In that case I would chalk it up to experience, sell it with full disclosure and buy something else.