C7/C8/C9 fielding started in 1986, but ammunition issues occurred and delayed rollout into 1987 (at least I haven’t ever been able to find a unit that was entirely kitted out in 1996).
US ammunition was issued in the interim, blank (the short pug nose) and ball (both M193 and some limited M855) in Petawawa - one could find it in training areas in the summer of 1987 (no not after US forces had trained there - it was being issued by the CA).
I did my SAC Course in 1988 (with the C1A1), and got to see a bunch of the 5.56mm ammo tests at Connaught where the penetrator was off center and causing mid-flight (or barrel exit) “detonations” as the bullet jacket could not contain the force of the off center projectile.
@AmmoTech90 may know more about it, but from what I have seen is that up until around 1989 some lots of IVI C77 ball still had issues (often getting sold into the US) but nowhere near as severe as the early ammunition, as one could see fragments in modular tenting setup over the weapons stands.
Totally unrelated IVI had also loaded some early “heavy” 69-78gr Match ammunition in the 70’s and early 1980’s (maybe late 60’s even), I got to see some reference lots from the US Government that had gotten it for some project that I have never been able to find out (my boss and mentor later in life was LtCol Dave Lutz USMC ret. - who was the M16A2 Project Officer, and the USMC Small Arms PM. First alerted me to their existence - as he had found (when on active duty) some heavy match bullets the Army had both loaded and unloaded ammo -- it wouldn’t fire accurately in the M16 and M16A1 barrels (1:14 then 1:12) twist, so he determined that somewhere somehow (potentially during the Vietnam War) someone had made faster twist barrels for the M16 series before the 1:7 barrel decision for the M16A2 - but hadn’t been able to find any -- nor did we find any in C. Reed Knight’s extensive collection including a lot of “one of” prototypes from Colt and stuff he had done early on for Special folks.
I actually had a Australian version of the FNC1 in the 1980s-early 1990s. Kicking myself that I later sold it!
I had a very nice Aussie L1A1 that I did up with Cdn Walnut Furniture.
When one actually had the properly fitted stock one didn’t end up with chipmunk cheeks after all - I of course found that out AFTER the C1A1 had sunset with the CAF...