Utah: I would surmise that "someone" re-worked" that 22 L.R. by apparently reaming the old barrel and installing an insert? I have a BUNCH of Ruger Model 77's in MANY calibers and never seen a muzzle munched up like that?
Maybe I am miss-seeing something but whoever sold that Rifle to that shop should have alerted them that it had been changed from a 22 L.R. to a 17 Mach2
Maybe if you get a 17 Mach2 round (I have many thousands of them and can send you one if you don't want to buy a box) and insert it and put on all your safety gear and holding it in your left hand only point it downrange and touch one off.
Strange and maybe a refund is in order (if you don't want a "bubba'ed" Ruger 77)?
Best of luck to you (and turn your face away when you touch it off.
Hold into the wind
VarmintGuy