I think that if you fully retract(remove) the set screws and file flat the front rail surface that unless something else(like the sleeve and the interior part of the front clamp) is causing it to bind that it will work correctly with all the original parts returned and installed properly. I have several of this vintage/design and they all work correctly.
Now when I obtained them that was not always the case. I think there is lack of understanding how it works that leads to well intended modifications. It's modus operandi is not intuitively obvious.
When I move mine laterally, the front clamp drags against the back side of the rail, not the base against the front of the rail unless I push it into the rail.
A thing to get used to is the amount of turning the knob requires to fully loosen the clamps.
P.S. there are many washers(7) that must be correctly in place.