It sounds as if it is short cycling. Not driving the bolt back far enough or fast enough. They are not usually picky about ammo, but I'd make sure to try some 50-60 grain PMC or other pseudo-military ball round (rather than a super-velocity varmint round.)
See if someone will let you shoot your upper on their lower. It will at least rule out all the recoil buffer components as the suspect parts if it still fails.
If you can't try it on another lower, take the buffer components out of yours and check for binding, etc,
After you've ruled out the obvious things, I'd start to suspect the gas port in the barrel or the gas tube itself being partially blocked. Take the handguards off and do a visual to ensure the tube is not crimped or cracked somewhere.
The only time I've seen an M-16 short cycle was on a "shortie" upper. It turned out the gas burst was coming too soon and was too short also. The easy fix was to effectively lengthen the barrel by putting on a solid "flash suppressor". I suspect the proper fix would have been a larger gas port feeding a larger diameter tube for a short section under the hand guard to store more gas energy.
I have a friend who is quite an expert amateur with the M-16/AR-15, but it is very hard to work on them long distance.
I would go to a local NRA match and ask around. Someone will help or tell you who to take it to. Go early, before the sign-ups start. After that things get rushed.
Don