Seat tube lug repair?

Hi everyone,
Please correct me if starting a new thread for this is not the best idea.
I didn't find a more appropriate one, however.

There is a vintage Reynolds 531 frame with a tad too tight seat tube and a seat lug anomaly that is pictured below.
It takes 26.8 post, which is resistant (but possible to convince with a bit of effort) to slide up and down freely.
I'm planning to address it with a flex hone and the electric screwdriver (although the seat tube is clean inside).
It also exhibits, however, a gap between the pointy seat lug bit and the seatpost (even fully inserted and tightened).
I was trying to bend it back into shape with the help of the adjustable spanner, but with little to no success.
I'd prefer to fix it myself if possible, but also wouldn't mind paying a framebuilder a visit if it's not.
Is this issue uncommon at all? Maybe I'm being too dramatic and shouldn't bother. I wonder if the frame was built this way or if something has happened to it though.
The bike is intended as an everyday commute, however, and I'm a bit concerned about rainwater getting into the tube through the gap or muck accumulating in the area.

Any help / advice is greatly appreciated,
Cheers!

1 Attachment

Gap is a nothing, hone it, grease post and continue.

Recently done the exact same thing on a pub bike.

Alright, thanks..
Kind of pity to leave it as it is as I want to build it up nicely :)
But probably it's not such a big deal