A bulge at the base of the brass is nothing to be overly concerned about. The base of the brass is solid through the head area, then opens up right above the head into the powder chamber. Most manufacturers produce brass inside the Saami chamber specs for that particular round, +/- some specific tolerance. Firearm manufacturers then cut chambers to Saami specs, and if they're mass produced rifles, they will likely be at Saami max or close to for the chamber spec. If not, there would be a significant number of returns due to brass not fitting.
What you're seeing is brass that's on the low side, a chamber that's on the high side, and the slack in between in being blown out during firing. It does put a bit more strain on the brass from being work hardened, but other than that, there's absolutely nothing wrong with this. At worst, you may get a few less firings out of reloaded cases.
I suggest you hang on to your gun and quit sending it back to the people at H&R. If it's shooting well and the brass isn't rupturing upon firing, then I'd consider this a non-issue. I've seen this plenty of times and I would consider this normal.