Update: sent the gun to CZ and after 4 to 5 long painful weeks it came back with a reworked barrel! Took it out and put 100 rounds through it and it functioned correctly! I shot the best group (various timed drills with buddies, all but one of 50 shots were in the center mass and head of IPDA target) Ive ever done.
The funny recoil issue was fixed as well. The fresh round was dragging and causing a two-stage "kerchunk" as the slide slammed home, which made recoil impossible to compensate for.
Since going to the factory it all seems fixed!
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