Bearings were 3/16" and correct number. Cups were fine (once I pulled the shields and checked) Cones were a bit rough, but not the issue.

The Answer:

The Cones had an O-ring on the outside edge, never had a hub with these. On taking the hub apart again I noticed the 2 O-rings were slightly different sizes. Previous owner must have replaced one with a non-OEM part. That non-original O-ring was just enough bigger that it would bind in the cover shields, making the axle not spin or move side to side, but leaving the opposite side loose so the axle would move up and down on that side. I was feeling/reading that binding as "too tight" when assembling the hub when I still had a few more threads to go to get to proper setting. I removed the oversized O-ring and everything worked they way it has on all the other hubs I have serviced.
I might not have noticed had I not taken the hub apart from the other side leaving the cone stuck on one side. When I took it apart the first time the wrench was on the side with the binding O-ring, but could not feel it "stuck" with the leverage of the wrench. Now I guess I need to find the correct O-ring