Jack,
Your foto shows clearly how the bolt arm is sliding off the side of the cam. It should fall straight off the front. A continuing use of this situation will lead to degraded timing and ultimately replacement of the hammer cam and the bolt. This is pretty much the norm and why "fixing" the factory offerings is the best of all situations. I had a '60 Army pretty much shear off the cam on a Pietta offering in less than 50 cycles. Some here even questioned that but . . . . whatever. This was a revolver sent to me for a magazine article.
Leaving that alone, there is so much you could do to that revolver just to make it work better, be more shooter friendly, quit destroying itself, allow you to be in control of the weapon rather than fighting the weapon just to use it. The best advice I could give you is to get a copy of Jerry Kuhnhausen's book " The Colt Single Action Revolver A Shop Manual " . It is the best " hands on" instruction of how, what, and why. Or, you can PM me your number and I could talk you through some things. I don't have time to peck it all out on a keyboard!
It's good to see someone interested in the correct way to set up a single action revolver!
Careful what you learn watching YouTube vids! Most don't have a clue!! (Not to mention WHO you listen too).
Mike
www.goonsgunworks.com
Follow me on Instagram @ goonsgunworks
BTW, you can watch what's going on "inside" by removing the trigger guard and just watching. You'll see the arm scooting off the side of the cam rather than falling off the front.