I will confirm what others have said. I've installed these things dozens of times. I can almost guarantee you 100% that TC is not fully seated, and that's your issue.
I never had much luck trying to seat the TC while spinning it.
Instead remove the TC and note the position of the "keyways". Then look into the tranny input hole and note the position of the "keys" there that are supposed to go into the keyways on the TC. Try to align them and push the TC in. If it doesnt seat deeper than before, then remove it fully, rotate a tiny bit in either direction, and try pushing it on again. Keep doing that until it seats. It doesnt take any extra force to install it once the key/keyway are aligned properly, so dont force it.
You also dont need to measure the depth every time while you are trying to install it. The difference is SIGNIFICANT and you'll know right away when its fully seated.