Problems with Tikka 223 and XLR Element Chassis?

[XLR]

First time in a chassis for me so not too sure how that all works, sounds like an easy fix?

Sure is! Here is a link going over adjusting the latch. The chassis being used is an Envy Pro, but the adjustable latch feature is the exact same design and function.
Please don't hesitate to reach out with any further questions.
XLR Adjustable Latch Adjustments