That XM ammo is either reject for some reason or overrun. The overrun should be good. The reject is usually something like no sealer on the primer or bullet or it might not crono properly. I would think if the reject had a dangerous defect there would be no way they would sell it. We shoot a bunch of it for practice when we can get good deals on it.
I personally have never had an issue with it, but then we are shooting some old stock from about a year or two ago. Most of what we have is thirty to a box on three stripper clips and some bulk boxes of loose rounds. We shoot quite a bit of Wolf steel case ammo also.
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