The hole in the end for the bushing is oversize? Use an oversize bushing to correct the fit. .705" OD. WWII era bushings should be a bit loose for easy removal in the field, but not sloppy. You could also go to the cone system if it's not salvageable. As a last resort, you could also build up the OD of the bushing with weld and turn it down to fit.
OVERSIZED 1911 BARREL BUSHINGS - Brownells