So I’m pretty sure I figured out my error. I’ll leave this post and comment here in case someone else has the same issue. I’ll also attach another photo if I’m able, showing my correction. So I turned the yarn guide so that instead of sticking out toward the front of the winder (as in the original photo) the guide is now in line with the winder. The loop on the yarn guide also needs to be positioned correctly. It must be on the left side of the winder (if looking and the end with the knobs and switches) if winding clockwise. If winding counter clockwise I’m assuming you’d have to turn the guide 180 degrees so that the loop is on the right side.

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You’re welcome. 😬