Paolo and I have been discussing the issues. The thin flat teflon gasket is to prevent noise when the spring rotates on compression. It is not a critical element of the piston.
He suggested attempting to hand tighten the sensor. I was not able to tighten further though it’s a pretty awkward reach. After I removed the gasket and reinstalled the piston, the same issues (leak, low pressure and “jerky” movement of handle persist.
Here is a new video of the leak which pretty clearly comes from under the sensor body.
This pull is with a blind basket. Top pressure is just over 9 bars at this point.