Ricca, Buongiorno!
You are correct. If there is no primer present, then the handle should travel farther down... which alerts the user that he's out of primers. To do this, the primer ram (or anvil) has to be smaller in diameter than 0.175". In other words, has to be able to slide up inside the empty primer pocket.
Right now I'm about 800 miles from my Dillon, but Gunzip says his primer ram measures 0.174". Are you able to measure yours?
And what brass are you using, and what do the primer pockets measure?
I can only suggest you remove your anvil from the primer shuttle. (There is a tiny set screw on the side that holds it in.) Then, if it's over 0.174" you can place the small end in an electric drill motor chuck. With the aid of a small hand file or emery cloth, a small amount of material can be removed until the anvil fits easily up inside the primer pocket of your brass.
I would not go by the measurement, but rather by the fit into your brass, because you may be running a brand of brass that's not common in the USA. So your circumstances have precedence over anything we can measure for you from here.
Hope this helps.