Yeah, the barrel pad is normal and while none of those options are really match grade, you should be seeing better groups than that. I've gotten right around 3/4" of an inch with CC Mini-Mags and right around an inch with Fed Auto Match but I wouldn't expect consistent 1/2 - 5/8" groups with any of those options. You have a few options though at this point.
a) Use aluminum tape to shim the barrel pad in hopes of changing the harmonics and improving accuracy. I've never done this myself though so I can't vouch for its effectiveness.
b) Remove the barrel pad to free float the barrel back to the receiver. I've done this one and I did see some improvements with regards to accuracy and consistency but the receiver also wasn't well supported so if I put any stress on the stock or action, like if I was slinging up, then I'd get POI shifts. A work around to that is to do a bedding job on the receiver with a pillar up front at the action screw.
c) Spend the $200 on a Victor Company Titan 10/22 stock and cheek riser, this is my recommendation because it's going to negate the back and forth of trying this and trying that. Drop your barreled action into the stock and you will see tangible improvements, especially when you start using quality match grade ammunition. I'm not saying the stock is going to be a miracle worker and suddenly make mini-mags shoot like Midas + but I'm positive you'll be happy with the changes.