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That is a quite common occurrence as dies often have in their instructions to wind down to to the shellholder.....which is a "nominal" lenght as actual sizing will depend on brass brand/number of...

They may touch when setting up but streatch apart when sizing because the press streatches.

Depending on the lenght of the chamber and the lenght of the die the die would normally have clearance from the shelholder......so winding it down further than nessacary will shorten the case more...

Depends on a lot of factors but if your primers fall out after a couple of times it is way to warm!:D

Loose primer pockets is one of the first to go on hot loads.
Imminent case head separation is...

Yep this^^^ but 1/4 to 1/2 a turn is way too much....an 1/8 to 1/16th a turn at a time or you can end up with excessive headspace and case head separation issues.

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