What I had to do to fix this Walther P-38: The Safety Hammer Lowering lever was not the right part that was in there, and was pretty chewed up.
So I bought and installed the correct part.
The Sear had a chip out of it, which come to find out is a norm for these.
So a New Sear in as well, allowing it to cock fully back.
The bend in the frame I was able to get a lot of it out by running the magazine
catch between the inside of the frame handle, as it's the same size, and lightly tapped it with a soft dead blow hammer up the handle little by little.
Everything functions as it should.
Took it in the back yard 1 round in the first Mag, to make sure there were no issues, 2nd mag 4 rounds shot one after the other, all went great.
For a little over $215.00 total cost of gun and parts I have a fully operational Walther P-38 AC1942 Matched # Pistol. This is a wonderful piece, has a bit of a bark to her. But Wow.