Gap Between Casement Window and Frame?

A home owner from Hinsdale, IL says:
Good morning: I noticed that there appears to be a gap between the casement window and frame even when the window is fully closed and locked (1st image). I've taken pictures of the Entry Guard operating arm, but cannot see any obvious "flaw". I did notice that the lever that reaches to the bottom of the window is rusted, but I don't know what that is called. Do you have any suggestions as to how I should address the repair?
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Bob from SWISCO responded:

Many thanks for writing in. Hm, I'm not sure why there's a gap, but the first thing I would do is replace your hinges. They look corroded and broken down. See our 36-048. I can't be certain if this will fix the gap issue, but it's reasonable to assume based on your current hinge's condition. Let us know what you find.

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