Thank you for the replies, particularly the very detailed explanation. That is how I thought it should function. Much like most other striker fired handguns. I have swapped out striker blocks, striker block return springs, verified the plastic dick under the rear sight, swapped striker assemblies. All with the same results of a protruding striker until it resets by contacting the sear and the end of its cycle. I also had a local and very reputable gunsmith take a quick look at it and he basically said it needs to go to Smith & Wesson probably for a replacement slide. I bought a model that was cerokoted by the distributor so returning it also concerned me because S&W wouldn't be able to replace the slide with one of the same color.
I made it to the gun shop where I purchased it yesterday and verified issues by looking at other Shields in stock. After a couple hours of waiting for the owner and the shop disassembling the Shield and verifying everything I said, I convinced them to swap out the malfunctioning slide with another cerokoted one they had in stock. It now works perfectly. Apparently the slide has some sort of manufacturing defect which was not easy to locate or repair and they are going to return it as defective to their distributor and let them deal with it. I give credit to the gun shop, great customer service. They would have been well within their right to tell me I need to send it in to S&W but they helped me out.
Thank you for your help.
Joel