Posted by Buffer on 28/11/2020 21:31:10:
What is the nominal thread diameter?
By nominal I mean the thread size. So in the case of your 3/16" x 40 thread I'd turn to 3/16", without worrying about the 5 tenths, say 0.187".
I don't think having the blank at nominal thread diameter is the problem. I've recently made a batch of wick feed oilers for my traction engines:

The threads on the spigot underneath the body are 1/4" x 40. They were screwcut using a full form insert; the OD measures 0.25" give or take the odd few tenths, some over some under. Likewise the lids bottom left have a 7/16" x 32 screwcut thread. They measure 0.4375" on the OD.
The interesting part is the 5/32" x 40 threads on the copper tubes. The tube OD measures 0.1575". A 2.5mm drill slips neatly inside. That gives a wall thickness of 0.0295". A 40 tpi Whitworth thread has a depth of about 0.016" so that leaves 0.0135" minimum wall thickness after threading. When I made the first batch of these oilers I screwcut the 5/32" x 40 threads. But it was a pain as slightly too much depth of cut and the remaining thin wall gave way. So this time I resorted to a die in a tailstock dieholder. It worked fine and the OD of the resultant thread is 0.1575", so slightly over nominal. But they fit nicely in the mating tapped holes. The threads are properly formed for the full length and without breaking the remaining thin wall. That's why I don't think making the stock undersize is the solution. It's perfectly possible to cut nice threads starting at nominal diameter with a die. Reducing the diameter may appear to help, but it's covering up the problem not solving it. The die I used was part of a present (Triangle brand) some 50 odd years ago and the tailstock dieholder came from Arc, so neither are top notch professional (*), but they did the job fine. A few questions:
Where did the die and tailstock holder come from?
Have the die and/or holder been used satisfactorily in the past?
Was the die opened out to its maximum to check the fit before adjusting?
Have you tried the same setup on something more forgiving like brass?
Andrew
(*) Apologies to Ketan – I'm more than pleased with the tailstock dieholder set from Arc and it does what I expect without fuss, with one minor annoyance.