Not sure, but there are several posts out there (here and in the MG Experience forums). Evidently, the plug can work its way in, and, yes, strang detonations will happen. I don't think it's a super common condition, but something to keep on the look-out for. In serious cases, there will be a bad leak of coolant (but at least that will be an easy diagnosis). I think mine was possibly assembled without the PO knowing what was there (because it was there from the get-go, only it got progressively worse over several hundred miles).
Found 2 posts (that include tips from Hap on this):
https://www.mgexperience.net/phorum/read.php?1,2096990,page=1
"Ok with you doing retorque and seeming to get a seal I doubt this is your issue, but it's worth mentioning and something alot of folks don't know about. On the A series heads, for sure the 1275 head, there is a brass plug that barely intersects the fire rings on #2 and #3 cylinders that sometimes can with heat countersink itself into the head casting, if it does this, then you will get water directly into cylinder #2 and #3, I guess in the last 15 years I repaired atleast 3 1275 heads that the plug drifted upward, or was completely gone."
In my case, there was no water issue but a cross-fire between cylinders.
https://www.mgexperience.net/phorum/read.php?3,2112483,page=1
"This has probably nothing to do with your issue, but I thought I would share with the group. When rebuilding a A series head, one should pay close attention to brass plug in the head surface where it bolts to the block, there is brass plug there, it intersects #2 and #3 fire rings of the head gasket, and it known to counter sink, even fall into the head, if it is not there, then it will dump water directly in to #2 and/or #3 cylinders, and most folks would never recognize it's absense if not there, if it is countersunk from the deck surface of the head it could cause a head gasket failure. I'm doing a 1275 head rebuild right now and the owner ask me to not do a resurface if the head was straight, howeverr I found a issue that required resurfacing, I first check the combustion chambers to confrim they were stock, they were, but this brass plus was countersank about .007' in the head, so we did a .010" resurface to elminate the counter sunk plug issue. I've had tow cases where these plugs were totlay missing and in that case developed a nice repair for this, I thread that hole in the head deck for NPT plug, I use a brass square peg NPT plug, Install the brass NPT plug with JBweld on the treads for seal, cut most of the proud section of the plug off with a cut off wheel, then resurface the head until it cleans up where the plug was install, in this case truely better than new, because the threaded plug is never going to move."
Again, in my case, the plug settled in about a 1/16th of an inch, and the gasket dimpled in right there but with no coolant issues (and this is right across the fire-rings). Not good.