I've been thinking more: does the screw fit the holder, or is it loose? My round-nose holder (3/8" straight shank, not necked down) uses 10mm (RPMT10T3MOE) inserts and an M4 x10mm screw; an M3.5 screw that may fit in the holder doesn't drop through the hole in the insert, but an M3 screw does drop through (and would never grab in an M4 threaded hole).