I will ask. My guess on what happened is this...steel tanks using nitrox. O ring blows on tank while switching between dives. Crew puts o ring on—fatter than the nitrox o-ring. When I go to turn on tank right before I get up to jump in, the air rushes out my first stage. My guess is that somehow the wrong size o ring on the tank caused too much pressure to build which blew out the o ring on my regulator. Could that happen?
Unlikely.
You are describing the o-ring between your 1st stage and the face of the valve. If this does not form a proper seal then air rushes out between the 1st stage and the face of the valve (yoke regulator) or the valve opening (DIN regulator). If a proper seal is formed then air enters the 1st stage as normal.
There is nothing about the o-ring at the valve/1st stage interface that would specifically cause an internal o-ring to blow.
It could be that the o-ring at the valve/1st stage interface was not making a proper seal and the high pressure air rushing out seemed to come from behind the plastic cover as you indicated.
If there was an internal o-ring that was compromised, it is unclear how that could happen and cause the rush of air out from the area you indicated without the diaphragm (or its position) being compromised as well...your description so far leads me to believe one of the following scenarios took place:
1. Problem with o-ring at the 1st stage - valve interface and the rush of air seemed to be coming from an area different than where it actually was coming from.
or
2. Problem with an o-ring on the HP side of the 1st stage that caused air to leak past the diaphragm on the LP side...if this was the case then my bet is that the shop tech replaced the compromised o-ring, inspected the diaphragm, and tightened the retaining nut to ensure a proper seal between the retaining nut, the diaphragm, and the 1st stage body.
or
3. The retaining nut was somehow not tight enough and the air was leaking out from between the the retaining nut, diaphragm, and 1st stage body. In this case the shop tech most likely just tightened the retaining nut to create/improve the seal.
Here is a picture of a torn-down MR15X with the parts laid out. You can see there are no o-rings on the LP side (circled in red) of the 1st stage other than on the port plugs.
-Z