Well, problem solved ...!!!
The whole thing was caused by the Sear pin e-clip that was never installed on the rifle .
By some incredible luck , the rifle functioned until Thursday , when I shot 119 rds . Before that , I shot it very little because of the ammo scarce problem , so I believe I used it only a couple of times and just a couple of mags total and I guess I didn`t touch the safety , which I did this time and using the safety was what precipitated the whole thing , in my opinion.
Anyway , after shooting 4 mags , the Sear pin walked out because of the missing e-clip ... I compounded the problem by thinking that because I had the rifle already zeroed , even thou the red dot has a detachable mount , I didn`t really wanted to touch it , so I left the optic mounted and the side rail that is screwed to the left side of the receiver , untouched...big mistake !!!
It turns out that when the Sear pin slided out , the safety catch by not having the holder piece inserted on the Sear pin that keeps it in place(it was dancing loose inside the receiver once the sear pin walked out), it also slided out a little and since I had the other side of the receiver covered by the side rail (my side rail is an universal AK type and I never got around to drill the 3 pin holes thru it to access the pins from that side without taking the side rail off ) I was not able to see that the safety catch was also out of its hole ... that is why the parts were not aligning and I cut not position the Sear correctly ... very stupid on my part not to check visually that all the pins were correctly thru the holes. I understood everything that was happening as soon as I took the side rail off .
Well, I corrected the safety catch position , inserted the Sear and everything fell into place instantly . I found an e-clip that will suffice until I order the correct one on Monday .
I am so glad nothing was broke and everything works as it is suppose to . To think that a simple , miserable e-clip can cause that debacle augmented by my stupidity ...!!! Ah , well , back to normal again .