OP
@JGW006 :
I have both Retina IIc and IIIc cameras. The IIc and IIIc have the same or similar Synchro-Compur shutter, albeit the IIIc model might have a slightly larger diameter to accommodate the f/2 lens. ... I would verify this but my IIIc is off at the shop for a service at present. But I pulled out my IIc ... the shutter markings on both are identical and the shutter works the same way. On the Retina, you can set 1/500 second whether or not the shutter is cocked ... there is no difference in the feel of the shutter ring despite the additional spring load.
What I noticed in your photo is that the camera does seem to be set at 1/500 second ... I think you're simply misreading the shutter dial markings. Here's a clear photo of my IIc shutter dial set to 1/500 second @ f/8:
View attachment 4845570
and here with some red markings to help you see what the indice and settings are:
View attachment 4845571
Note that the speed indice mark is the little mark right at the left edge of the "500" indication, in line with the "5". If you look down the row of shutter speed markings, you'll note that the indices are only really centered on the slow speed train from B to 1/4 sec, all the rest of the indices are offset to some degree against the time number. This is due to the fact that the indices are spaced equidistantly but the engraved speed marking numbers vary in width.
The long and the short of this is that the shutter speed in your camera is properly set to 1/500 second, and you are simply misreading where the setting is placed.
G