That's less than .005" larger than 5/64. I don't know if that's out of spec, but it seems like a small amount of wear. Does anybody have the spec on it?
I’ll see if I can find the Chrysler spec because I believe there is one, but when the ring, especially that big, heavy one is that loose in the grove it looses seal every time the piston changes directions and it will just continue to beat the ring groove out of it. That’s why some of the power adder stuff has hard anodized top ring grooves.