Venom used to do an alloy piston conversion for a few rifles (including the TX200). It was called an Ultraglide
Pretty sure they did this right up to when their relationship with Webley folded (2005/2006)
I'm not saying that is or could be an Ultraglide piston, as I've never seen one.
In terms of the O ring, it looks a bit on the large side.
In my experience, O ring piston seals need to be specced to a very high tolerance to work well. If yours is overly tight, it could simply have the wrong seal on it, or the O ring could have swollen by being affected by lubrication. Some O rings are not resistant to petroleum based lubes.
Using a lube like Krytox, which doesn't harm O rings, would be the way I'd go, after checking that the seal is in good order and of the correct size.
Are there any other aspects of the rifle, that look non standard?
Have you seen this
@Hw95 ? Any ideas?