1. Make sure set screw is not the one keeping it open.
2. Move the TB blade, is it free or does it bind somewhere is its 90 degrees travel?
3. Take picture and send picture to Darrell.
4. Talk to darrel with the picture as reference.
5. Darrell is a nice guy, if it does find that somewhere during machining or shipping something keeps it from closing it completely, he will try his best to resolve the problem including even sending you another one.
The answer is YES, it should close completely with no binding anywhere. It should seal completely.
His machinery is nc assistance with means his machinery is reading in tenth's of thousands.
Many years ago I spent hours talking to him about his shop and his bridgeport set-up and fixturing jigs for this task.