I also have the g0602(Z) I put a VFD on it and Clough's ELS (and RJsakowski's 6 bolt compound clamp). I use a AXA QCTP with carbide only. If your chips aren't turning color, you're probably being too cautious. On 1018 (depending on diameter) I take .040" DOC and feed at .005" per rev. When I was new with it, I did .010" to .025" and who knows the feed rate I used. The only thing that makes everything I'm suggesting irrelevant, you say when you go back to stock, it NOW cuts poorly. I have to add, close isn't always close enough with tool height. Do you have a height gauge? gage blocks? I didn't realize when I first bought my lathe how deep the tool rabbit hole goes, even though everyone here warned me, it.never.stops.
Setting it based on the nipple left on facing or parting and eyeballing a carbide tool to that isn't consistent or accurate enough (for me when that was a technique I used early off) I made the Armstong type parting tool like Winky's workshop, but altered to use carbide. .004" is the difference of it working flawless or breaking an insert....A SHEET OF PAPER THICKNESS! I think when your new to this, the VERY SMALL is just shrugged off, after enough time you will spend a great deal of time focusing on the smallest of measurements.
GOOD LUCK, welcome to the forum, there is a great deal of knowledge around here that has saved my backside more than once!