You could try a couple things. I am not totally sure what you mean by elevate the square box area some explanation would help.
I have had success with a flat head screwdriver, you place it the square hole you reference and gently apply pressure and force the top of the mag out slightly. This may be what you are explaining.
You seem to have a sloppy mag well which may not have been a problem for your original mag catch. Velcro on the side opposite the catch may move the mag over enough to create a positive engagement. Also a little at the rear of the mag well can address the feeding issue. Use the fuzzy side of the Velcro and a little patience.
Beyond that you might need to add some material to the catch itself or buy another one and see.
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