The lighter pellet, combined with the smaller head diameter head size and lower velocities are 3 factors working against you and allowing deflection to be a huge nemesis. I wonder if your clean cut shears were with your higher velocities?
Good job Dan, I knew you would be cutting those cards! One thing you might want to try is to shoot off of two bags like my friend is doing in the picture. I like to use the taller bag in front and then a small squeeze bag in the back with the bottom of the pistol grip bedded solidly on the small bag. It’s incredibly stable and really easy to keep the crosshairs from moving using the two bags. She had never shot any kind of gun before and she was doing five shot groups inside of a dime at 20 yards. The smile couldn’t be wiped off her face lol! The pistol is a HW44 .177, but the 1701 will be the same.