Andy,
This tiny line – is it on the same side of every tooth? If so it has likely shifted. If on only teeth part way round you would see where it shifted (unless it moved just before starting the second cut).
Do you really need to make that second cut? One cut would avoid the problem.
If on one side or the other, I would look at your methodology – consistent tightening of the dividing head for every tooth. Maybe leaving some friction applied while advancing the wheel.
Are the wheels supported sufficiently?
I don't make tiny/flimsy gear wheels, so I'm just throwing out ideas.