I know nothing about ice augers but have done a fair number of large ice carvings.
The chisels I used had to be ultra sharp and the back edge had to be dead flat with no angle else they just skidded.
I would check if the edge of the blade against the ice has been ground away from flat I would suspect that this is what is wrong. In other words you have a flat edge on the ice rather than a sharp edge.
Your blade in the second photo looks as if the edge of the blade has been stoned on its back side to remove the grinding flash producing a tiny flat edge.
I could be totally wrong here, Just my 2c
The chisels I used had to be ultra sharp and the back edge had to be dead flat with no angle else they just skidded.
I would check if the edge of the blade against the ice has been ground away from flat I would suspect that this is what is wrong. In other words you have a flat edge on the ice rather than a sharp edge.
Your blade in the second photo looks as if the edge of the blade has been stoned on its back side to remove the grinding flash producing a tiny flat edge.
I could be totally wrong here, Just my 2c