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The V2's have the notch where the upper meets the front end also.
Improvements in the V3's:
Steel front sight
Improved mag fitment
Improved inner cavity of the receiver (charging handle fits alot better now)
More realistic battle grip
Widened channel in buffer tube, makes running wires to the stock easier
Slightly textured finish on the front end (not that there was anything wrong with previous versions)
Blued finish on the flash hider
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