For some reason I can’t see page 2 of responses, hope this wasn’t covered there.

It looks like a bad chamber, or larger than the original. The extractor look proud of the chamber.
If the extractor is holding the case up, easy enough to check, fire it without the extractor.

A chamber cast would not be a bad idea.

There is a significant (relative) pressure difference between the CCI Quiet and CB shorts, due to the 25% increase in bullet weight.

I would not be so sure that the crimp on the end of the case is due to low pressure not expanding the case. Since there is enough pressure to bulge the base where the brass is thicker, there should have been enough to blow the crimp out.

Below looks like a lip on the chamber end.

Dellet,
You have a sharp eye.  With a magnifier and a metal pick, I saw the small lip you pointed out.  A thin round stone was able to remove that.  Thank you.

In addition to being slightly high, the extractor is not well cut to accommodate the cartridge rim.  When I get a spot of time, I'll take it out to shape it and give it a test fire.

I'll report back. 
Joe

Did you cut/fit the extractor after chamber reaming? That would create a problem, forcing the reamer to cut into the previously cut chamber as well as the extractor.

Do not try to cut the extractor with a chamber reamer while it is the action. This will force the chamber reamer to cut an oversize chamber.

I cut extractors on the milling machine with the extractor in the vice and the chamber reamer in the quill. Carefully.

No real risk using higher velocity .22’s in an H&A 922.  It’s a quite robust action since it is a true falling block.  The same size frame was used for .32rf and .38rf in factory H&A 932’s and 938’s.  I have one that is converted from .32rf to .32 S&W Long (different barrel to get true .312 diameter and different link between the lever and block to get the firing pin to the center of the chamber).  It shoots .32 S&W Long with no signs of pressure.  .32 S&W Long is lower pressure than .22 LR (15,000 psi versus 24,000 psi) but has much higher breach thrust.

I won’t comment on shooting critters in the yard since I’m guilty too.

Since you are new at this.
Here’s my thoughts on this gun.  You’re going to probably get away with what you have as long as you are shooting the low pressure stuff.  But, if you ever shoot high velocity shells you are probably going to see some issues crop up quickly.  I’ve seen high velocity shells “pop” the rim because there was to much of an unsupported area around the rim, something like you have.  Like someone else said, a high velocity 22LR can be up in the 25000 psi range.

The other issue I see, (and maybe this is an illusion because of the photography) the head space is messed up.  It appears the liner is hanging out behind the original barrel breech face.  If this is the case, and the original head space was correct, then you are crushing the breech block against the thin edge of the liner shell head clearance cut.

I’m guessing you don’t have a lathe?  But, in my opinion, in order to make this “right” and “safe”, you need to do one of two things.  
One, do like John Taylor said and install a new chamber liner.  Leaving slightly long so the proper head space can be obtained.
Or, set the barrel back, adjusting for the proper head space, recut the extractor and rechamber.  This solution will create other required fixes, like the take down screw and forearm retaining screw.
Either of these will require a lathe.

With a 22LR, as long is the chamber, barrel breech face, extractor, breech block face and head space are all correct, the age of the gun will make no difference and I would not be afraid to shoot the gun.
Bob