That's some interesting diagnostic information (steel case shoots better than brass), but I'd recommend fixing the underlying problem. A healthy and well operating PLR-16 should function reliably with brass cased ammo.
Of course, once you've fired steel case ammo, the chamber could be crudded up with powder fouling and maybe polymer or lacquer if that's the finish on the steel case ammo. It's a bit difficult to get to the chamber on the PLR, and that's an area that's often overlooked or not given enough attention, and that can lead to failure to eject problems, or difficult ejection could leave insufficient energy to reliably feed the next round. At the very least, I'd get in there with a good bore solvent and a 9mm brush and clean the chamber well to make sure that's not the problem. I might also be inclined to polish the chamber.
There are also some gas system problems that might favor steel case to brass case ammo, although that might be an issue for Kel-Tec to resolve.
There are certainly other possible issues that might cause your PLR's unusual propensity for steel case ammo that I'm missing. Anybody?
It's an interesting problem. Please let us know what it was so we can all learn.