Your insert rad is way too large for a turning of that diameter in SS (or any material if you ask me), its pushing too much rather than cutting, you want almost zero radial load and it to all be axial, at that diameter there just isn't enough material to take the load you're subjecting it to. Take it down to .004 or .002. Also try firming up your guide a bit, but if only the small diameter is running out then I would put a large wager down that its your insert that is the issue.
Cheers.


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