Yeah it's off center.. I don't think that's causing the issue... But, the last two inches you say is.. sketchy and smooth, sounds like someone got aggressive and ramrodded it with a steel cleaning rod without a muzzle protector and then tried to counterbore their mistake away. It doesn't look like they went but maybe a 1/2 to maybe 3/4 inch in with the counterbore, which probably wasn't enough, I've seen Mosins counterbored between 2 or 3 inches.
Just for $hits and giggles
I mean call it a learning experience, or an experiment..... You made a firing pin, that part is kinda cool
so... (I'll probably get flamed for this, oh well, it's kinda my thing) maybe try to counter bore it deeper, like thru the worn 2 inches and get it square.. honestly, you've said you have a spare barrel... What's it gonna hurt to try? It probably wouldn't shoot any worse and may actually get better to an extent.
It may.... Or it may not.... You just have to see how it responds.... but it could have an effect on the gas system, but I'm sure that even that could be resolved, Pax or GG might need to correct me, but the Paras I believe have a slightly larger gas port to compensate for the shorter barrel, and the loss of pressure due to that fact. Basically you would kinda be creating a Para with a normal length barrel. Like I said.. it's messed up anyway, it's kinda the perfect learning and experimenting tool at the moment.... Cause I'd probably do it if I had it, just to see..