Richard King is a very experienced and very well respected machine re-builder on this forum, he's particularly aware of sponsored forum sections since he hosts one here himself. If you want your machine to be perfect he's one of the best to to look to.
As far as your post I think it's exactly the reason Precision Matthews also hosts a forum here. There's an old saying in business "a complaint is a complement" that simply means having a customer tell you what they're not happy about is one of the best ways of getting better at what you do. If customers don't speak up, but instead just go spend their money somewhere else then you've not only lost the customer, you've lost the opportunity to improve your products and service.
I really can't say anything about your particular issue that hasn't already been said so instead I'll relate an experience from my previous business. I had a customer bring his snowblower in for a tune up and we did our standard service, including running it into a snow bank and confirming that everything worked right.
He brought it back again and again complaining that it didn't run smoothly enough and I tried my best to get it to where he wanted it including modifying his carburetor (I was a racing go kart engine builder so I knew a little about small engines). He kept bringing it back and I came to understand that he was a retired automotive engineer and that gave him a unique perspective on all things mechanical.
Now this particular engine was a Tecumseh L-head design from the early part of the 20th century, it did it's job well but was never designed to run smoothly. I was also a Honda snowblower dealer so I had the ability to sell him one that would definitely run smoother but that's not what he wanted.
Eventually when he brought it in again I started it up and ran it into a big bank of snow and demonstrated how good it was running by throwing snow a good 40ft. I explained that his machine was designed to move snow and since it was doing that well I had in fact done everything that was needed and if he wanted something else I would be glad to sell him a new Honda so he could have a smooth idling engine.
My previous business building race engines I bought from a legendary kart engine builder who occasionally had customers complain that their engines didn't idle well. What Mike said was "it ain't an idling contest"
Any mechanical device is designed to do a particular job at a particular level of accuracy and a particular price point.
So, I'd posit that if your lathe cuts stainless steel and can make parts as accurate as you are able to, then it's performing as designed. It sounds like the scratch came some time after first setting it up but it's well documented here and elsewhere that Chinese built tools should be considered "kits" where you get to set-up and improve to your requirements. Others have given plenty of suggestions for how to do just that and it sounds like Precision Matthews is willing to do whatever it takes to keep you coming back.
Your thread will serve to help others decide what level $$$ of machine they desire so it's probably a win for all involved.
Cheers,