10" barrel...you don't get something for nothing
Ever hear of the .221 Remington Firreball? It was the original chanbering for the XP-100 pistol. I always wondered why Remington, who obviously knew quite a bit about guns and ammo would chamber their bolt action handgun in the .221 Fireball, instead of the more common .222 Remington. Then one day the light came on, and I understood the answer.
It was the 10" barrel. The .221 has a smaller (shorter) case body than the .222, and this was done because of the handgun barrel. The extra powder in the .222 was just being wasted. The .221 was efficient with that barrel, where the .222 wasn't. And the .223 would be even more so.
I have a 10" octagon .222 Rem barrel for my Contender, and I like it, even though you can't use all the potential of the .222 case in that short a barrel. On the other hand, it is easier to pack around, and off hand shots are still possible. I had a 14" .223 bull barrel, and found it awkward and heavy, and traded it off. Now, I don't mind the 14" .45-70 barrel, but the .223 just turned me off. No real good reason, just the way it was, for me.
So, with a 10" .223, you are going to get a lot of flash and blast, (with most loads), but as long as you aren't going to whine about the velocity you aren't getting, all will be well.
remember that Contender barrels (and most other sporting guns) in .223 are varmint guns. They are set up to shoot varmint bullets, most in the 50-55gr range. They were never intended (or made) to shoot the new styles of long range heavy target bullets. They may do so well enough, but don't count on it. The guns are made for sportsmen, so don't compare them to military guns, even with the same barrel length, it isn't a fair comparison.
Accuracy if a function of how well the barrel is made, how well the ammo is made (uniformity), how well the barrel likes the particular load, and how well the shooter can shoot. It is not affected by barrel length (profile, yes. Length, no) other than when using iron sights. And when using iron sights, it is the shooter's accuracy that is affected, not the gun's.
If it shot well (and you need to go through a number of load combinations to be sure), I wouldn't have any problem with a 10" .223 Contender. Just don't shoot some surplus ball ammo and think that is all the gun is capable of.