Maybe they don't hit the feed screw but when you tighten them you can't move the slide. This is why I thought they impinged on the screw.Most cross feed nuts are hand fitted at the machine when built. If the SHCS are hitting the thread when tighten, they need to be faced off until they do not bind against the screw. Should have about .030" minimum clearance so there is no chance of it touching the cross feed screw. As for adjusting the slack out of the screw, in theory, you should be able to tighten the middle screw until the nut halves get tight on the cross feed screw, then tighten the SHCS's. But if the nut has sufficient wear, this adjustment will not work. Have to go to plan B.
Cut you a .005" shim and put under the nut and cross slide and try it again. If it gets better, may have to put a thicker shim under the nut. But be careful, if the cross feed screw is not running parallel with the slide, the shim is not the cure. I have had to place shims under leadscrew nuts over the years on some of the lathes I've worked on. Just have to play with it and see what works best. Sometimes the screw thread does not get cut parallel to the mounting surface. Especially ones that have tapped threads in the nut.Maybe they don't hit the feed screw but when you tighten them you can't move the slide. This is why I thought they impinged on the screw.