Most likely it's a question of the .38 Special snapcaps not being long enough to cycle in the Marlin's action. This is a common problem, even with real ammo in the 1894C (mine included). Check the overall length, if it's less than 1.48 inches, that's probably the reason. Try some A-Zoom .357 Magnum snapcaps, they're longer and will probably cycle fine.
One of the "characteristics" of the Marlin 1894C with it's 18.5" barrel and magazine tube is that it needs ALMOST .357 Magnum length cartridges to function smoothly, yet it will only allow 9 rounds of most .357 magnum loads to fit in the magazine. It will hold 10 x .38 Specials in the magazine, a nice thing for CAS, but if they're not long enough, jams occur.
The magic window seems to be an OAL of between 1.48 and 1.54 inches.
So load your .38's longish, or load your .357's on the short side.
I guess that's why Marlin built all of their .357 "Cowboy" rifles with 20" barrels and magazine tubes?