Spark plug not seating.. Weird!

I pulled my driver's side head this weekend because of a blown head gasket. BUT, I found something that bothered me and maybe you guys can help me understand what I'm looking at? Here goes..

After pulling the head to start cleaning the old gasket and RTV sealent, I was inspecting the bottom and noticed that the spark plug on port 1 was not seated all the way. In fact, the electrode was just barely peeking through. I checked it and the plug was threaded all the way in. I backed it out and reinserted the plug and it won't go any further.

This is the first time while owning the car where I've pulled the head myself for repairs. What kind of problem does this present? I've never seen this before.
 
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