I think it is the stem. I just had the same problem with a Nitto Technomic stem. Pain in the rump, but it is just ever-so-slightly too big.
I put some time into sand paper and then emory cloth. Use some heavy tape to protect the area that will show from scratches. Messy, but it finally worked.
Once I had it down, I could see where the scoring showed from each effort to insert. That made the sanding process a bit more focused. Annoying, but it's the cheap Nitto.
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1959 Hilton Wrigley Connoisseur (my favorite!)
1963 Hetchins Mountain King
1971 Gitane Tour de France (original owner)
* 1971 Gitane Super Corsa (crashed)
* rebuilt as upright cruiser
1971 Gitane Super Corsa #2 (sweet replacement)
1980 Ritchey Road Touring (The Grail Bike)
1982 Tom Ritchey Everest
(replacing stolen 1981 TR Everest custom)
1982 Tom Ritchey McKinley (touring pickup truck)
1985 ALAN Record (Glued & Screwed. A gift.)