If they have the same problems, maybe all C4 guns are junk. I've never laid eyes on one, and have never heard of anyone in California using one. Maybe there is a reason. The important thing is does it work for you. Apparently it doesn't. Get something that works out of the box and/or has been assembled correctly.
I'm 80 and have been spearfishing at least 67 years, but Pete has the advantage on me since seems to have used and X-rayed every gun known to man. All I can talk about it the guns I've owned, and until recently they were American mid handles guns. In the last 25 years I think I've owned at least 10 different Wong guns and only one had a line release that didn't seem to have enough curve and backward bend. It seemed to work, but I was uncomfortable with it so Daryl sent me a replacement line release. The first photo shows a Wong line release.
Then more recently I've owned my first European guns other than a Champion arbalete in the early 1950s. I'm afraid I don't remember a thing about the Champion line release. I have two Abellan and they both have line releases that work. Second photo. I was pleasantly surprised since I keep reading on Spearboard about trouble with reverse mechanisms that some on some Euro guns. People see to always be changing them to some other mechanism. The mechs on the Abellan seem fine to me.
And then most recently I got a Ulusub. Third photo. It has the least curved line release of any of my guns, but it doesn't actually slope toward the muzzle like the one in your C4, and it seems work too.
When you buy a new gun, you shouldn't have to take it apart and fix it or modify it.
Don't let the bungee cord confuse you. That's there because I used breakaway float lines.