Your insert holder, does not have the correct tapered shim for the helix angle of the thread being cut. The other option is to grind the leading edge of the inset away leaving only a very thin witness of the insert shape and edge. Typically leave less than 0.1mm. Can be removed with diamond file or with diamond wheels with a dremel etc if you don’t have a diamond grinding wheel.
Most industrial threading insert holders have a range of insert shims, and a table of helix angle range that the shims cover. For both internal and external inserts.
To see where the insert is rubbing, coat it with a marker pen or marking blue. Take a light cut and view the area that is rubbing. Use a protractor from the cross slide table, and adjust it to match the helix angle of thread you are cutting . Use the rear side as this will automatically have clearance and be the true angle to measure from. Check that your insert edge is at least 1.5 deg clearance. I like to use 3 deg side clearance.
Mitsubishi turning tools in their threading section of their online catalogue have the data for helix angle and clearance ranges.
you can also change the compound slide to being 1/2 the angle of the thread form or less. Being less than the back side angle, of the thread form, means that as the tool is advanced, it will take a shaving cut on that edge.
People who make their own HSS tools usually have the leading edge with enough clearance for the helix angle. I like to add some top relief by using a small diamond mounted point and the little relief makes it like a chip breaker and will also give a better surface finish to the thread form. I normally leave about a 0.2mm land of the original shape. Some threading inserts including the Acme forms, have a pressed in chip breaker.
The very smelly Rocol threading oil and compound which has a sulphur compound in it, does give a very good surface finish when threading. So does using cutting oils like the Sunnen honing oil. I have switched to the Blaser cutting oil CSF35 which we also use it work. It does not have any sulphur compounds and does give an improved surface finish over the Rocol and other traditional cutting oils. The Blaser is oil is also a safer product for your health over all. I know also use it for my hone with very good results and stone life. I don’t use their hone oil as it does contain sulpher. The main task of the oil or coolant is the chip removal from the cutting tool and part being cut.