Hey guys, thank you so much for the replies.
I do agree with what most say, it just plain looks like bad chatter to me, but he says that he is doing the exact same thing that he has always done, was never a problem before but its there now. Obviously there is some variable, but we can not find what it is.
It is doing similar in Aluminum, although not as bad, but still a similar pattern.
Checked all gibs, all are tight.
It does do it in a different TPI setting too.
The compound angle is definitely right, at first it was not and it was making a strange angle on the threads (I see that a lot since they are marked different than we are used to) but once that was corrected, thread angle correct, but still has that torn finish.
Good point on the thread dial, but it does it even if you do not disengage the half nut, like you are threading Metric.
I also do not think it is in the machine, we literally have covered every single thing I can possibly think of, but still no good. I will double check the cutter with him, I believe he also tried a HSS cutter, I will have to go back and check the emails, we have like 50 to 100 emails back and forth.
What it looked like to me was something in the tool post / cutter too, same as many have suggested, but he says he has checked that all many times. What I have seen before is someone machine the T nut for the compound slide to mount a quick change tool post, the T nut is a bit thick, so the tool post seems tight, but its actually floating. Checked that too.
I am not checking any of this myself, he is checking it all, but there is nothing left I can come up with.
Once we figure it out, I will definitely post the fix, and I really appreciate all of the help so far!