Thank you everyone for the suggestions.
I should probably have stated more clearly that this is not how the lock was when I received it. I filed the first pan improperly and had to replace it.
Also, this is not a lock directly from Jim and Barbie Chambers, and I got a really good deal on it so I feel like trying to fix it myself.
For the size gap that I have at the front of the pan, I think that the lock would at-best look strange if I filed the pan and frizzen so that they fit tightly. The gap of .024 inch between the frizzen and pan is at the spot indicated in the photo below.
I think I will try to fill the pivot hole on the frizzen with a welder, anneal the frizzen, and re-drill the pivot since I have welded before. If that doesn't work, I will send it to Jim and Barbie Chambers to have a new frizzen fitted.