it shouldn't close on the no go gauge
The "go" gauge and the field gauges are SAAMI spec minimum and maximum chamber sizes. The "no-go" gauge is a suggested size when building NEW firearms. It is not a SAAMI spec. It should also not be used to check anything on a used barrel. .001 or .002 is not going to make much difference. If it's .010 over it will cause the primers to flatten early.
If the barrel is over gassed as in the gas port too large it can cycle early while high pressure gases are still in the chamber. If the case is pulled out of the chamber while pressure is high it can expand out side of the chamber and cause a bulge. Photos would help. You can check to see if that is causing the problem by spinning the gas block just enough to cover the gas port, shoot the same ammo in a once or twice and then compare the fired cartridge.
From Forster's website-
Forster offers three lengths of headspace gages per rifle caliber. In order from the shortest to longest, they are: GO, NO-GO and FIELD:
GO: Corresponds to the minimum chamber dimensions. If a rifle closes on a GO gage, the chamber will accept ammunition that is made to SAAMI’s maximum specifications. The GO gage is essential for checking a newly-reamed chamber in order to ensure a tight, accurate and safe chamber that will accept SAAMI maximum ammo. Although the GO gage is necessary for a gunsmith or armorer, it usually has fewer applications for the collector or surplus firearms purchaser.
NO-GO: Corresponds to the maximum headspace Forster recommends for gunsmiths chambering new, bolt action rifles. This is NOT a SAAMI-maximum measurement. If a rifle closes on a NO-GO gage, it may still be within SAAMI specifications or it may have excessive headspace. To determine if there is excessive headspace, the chamber should then be checked with a FIELD gage. The NO-GO gage is a valuable tool for checking a newly-reamed chamber in order to ensure a tight and accurate chamber.
FIELD: Corresponds to the longest safe headspace. If a rifle closes on a FIELD gage, its chamber is dangerously close to, or longer than, SAAMI’s specified maximum chamber size. If chamber headspace is excessive, the gun should be taken out of service until it has been inspected and repaired by a competent gunsmith. FIELD gages are slightly shorter than the SAAMI maximum in order to give a small safety margin.