I learned about the bulged case back in the 90's when brass fired in my Smith 5906 wouldn't chamber in a quality 1911 9mm. After that anything fired in the 5906 was kept separate.
Brass fired in machine guns with bulging was all over as well.
My guess is a loose chamber was an inexpensive way to ensure reliability.
I've been shooting major for years and never experienced bulging. The primer pockets would eventually loosen up, however. I have seen case ruptures in brass by Win, Browning and Herters. Never a problem with Blazer, FC or R-P with major.