Chuck,
It's looking like the outside diameter of the axle flange is too small, and the seat ring on the backside of the wheel is a bigger diameter than the axle flange. If you overtighten the lugs, it wants to "curl" the brake drum over the axle flange. If I had a set of Mopar axles I'd swap them out, but it isn't in my budget right now.
Wierd situations for sure.