I had the same problem with my quill DRO. It turns out to be a combination of 2 issues. The first is the somewhat flimsy connection bracket between the quill and the DRO scale. The second is the DRO scale doesn't slide smoothly in the DRO. There is an oversized copper alloy spring that positions the scale under the read head by pushing the scale against the side of the read head. But the scale is not as smooth as it could be, and the spring is too large, so the whole thing binds a little. The combination of flimsy and sticky add up to inaccuracy.
I fixed mine by replacing the DRO and the bracket. I might have been able to just remove the copper spring, but I had already ordered a new DRO which I like better anyways. It has an abs/rel button. There is a good video on the replacement from Blondihacks entitled "Small Milling Machine Improvements - PM-728VT". If you do the replacement, build the bracket to use the mounting hardware that comes with the DRO. Don't drill a hole in the DRO slide.
I fixed mine by replacing the DRO and the bracket. I might have been able to just remove the copper spring, but I had already ordered a new DRO which I like better anyways. It has an abs/rel button. There is a good video on the replacement from Blondihacks entitled "Small Milling Machine Improvements - PM-728VT". If you do the replacement, build the bracket to use the mounting hardware that comes with the DRO. Don't drill a hole in the DRO slide.