The 503 has variable power - and works like an attenuator pad, but it's not perfect.
It also has "switchable" class - AM versus SSB - so part of the problem is with that switch and to get that inherited delay so SSB works ok, but the AM side changes the class - the 503 does this via that switch - thru a set of jumpers on the board - but has to be set by you.
To use the SSB and only SSB;
By your symptoms - that "crunch" is two fold, one; not enough bias - so the start of the word gets cut off, on top of; number two, the PEAK of the consonant or vowel within the word making the radio signal swing peak - gets compressed or severely limited clipped - off.
So to me this sounds more like the Dynamics are what is causing this problem - signal strength and signal peaks are too widely spaced apart in power level for the thing to truly work right.
I'm not trying to preach but Swing kits', Sideband and MOSFET amps are not compatible in ALL areas - choose any two...Switches are optional.
So the amp runs in SSB, so the carrier kicks it into the middle to high range if you use AM mode with it on, because of the CLASS the amp thinks you want to use...
In AM you have the carrier beating down the amp's inputs already, in SSB the Amp "opens up" it's heart to hear your story and amplify it to the world - you have that vulnerability by Class of operation, in AM mode it's C or about 50% - again a limitation - even worse when you look at it...
In SSB the Class AB sign is sure to exceed your expectations...
...So - o - o - o....
Until something relents - our hands are tied to help you...