70-71 AMD Fender fitment woes

best pic I could find for an explanation is this:
View attachment 1716069888

The red line above is exaggerated to show what I mean by outward bow. The fender isn't bowed out enough to match the shape of the door.
Looks like you have quite a gap at the cowl. I would start with readjusting that first. Maybe the fender could be set on floor and pushed down on to gain back the bow that is missing. I think you're right about it being flattened out or squished. Does it sit high next to the cowl? That would tell me that it has definitely been flattened.