What typically would be the cause of a barrel bulging near the bushing, too much pressure I would expect, but is it possible that a previous bullet was lodged in the barrel and or is the barrel been subject to shooting too many lead bullets?
Almost certainly a previous bullet stuck there. Normally bulges are caused by an obstruction of some sort and sometimes it doesn’t take much. The gases pushing the bullet spike when the bullet comes into anything that increases resistance and the area behind the bullet bulges.