I FIXED IT!!!!!!!! So it was the spring in the valve that I suspected in Theory 1, it either got too compressed by 3mm or so, or the shoulder that is on the little pin wasnt holding it where it is meant to be and slipped over reducing the effectiveness of the spring as it did nothing...or possibly a missing part? See below.
If you look at the valve schematic, there is a part called "sphere" (part 14), that the "disconnecter" pin (Part 5), goes through before entering the breech area.
I suspect that is to keep the slight tension on that tiny spring (part 2), which seems to be for holding this pin back towards the valve so it doesn't flop forward and snag onto the trigger blade/pusher rendering your L2 useless.
My sphere was not inside the valve? Weird! Was it revised and no longer used? Where did mine disappear to? It cannot come out of the pin hole unless it disintegrated
and vanished as no remnants of it were found in the breach or inside the sacred valve.
Yes I did it, I opened the sacred valve, not that scary at all and went back together 3 times with ease before taking the plunge to add a tiny cut off of a spring in there to brace the spring better.
Results: Semi auto is now working flawlessly again! Breech doesn't jam shut after each shot! Magazine indexes perfectly! I did not have nail varnish on my valve so it shows no tampering either. I suspect we are kept out of that area due to patent as it is not that complicated in the valve.
Thank you for everybody that contributed in helping me get to the bottom of this, sometimes just bouncing ideas off of like minded tinkerers is all you need to solve a mystery!
...just woke up this morning and decided to give this a shot after very careful and logical consideration.
Now I better go and give my wife some Valentines day love and attention for the rest of the day as my face has been buried in my L2 for the past 2 days, so its her turn lol...keep your dirty minds clean gentlemen ;-)
YAY!