Sometimes the results you have in hand provide enough information to move forward to the next job.
What functional requirements does this rubber washer provide?
Have those functional requirements been met at this stage of the simulation?
For example, if the requirement was to prevent a pressurized fluid from leaking along the bolt shaft, maybe that requirement has already been met.
You say you want to move the steel cup 7 mm and are only 27% of the way there = 1.89 mm. What was the initial gap between the corner of the steel cap and the steel block. It looks like it is less than 7 mm.
Is the intent that the steel cup makes contact with the steel block? If so, this analysis shows that there is too much rubber in the design and the size of the rubber should be reduced so that it doesn't bulge out from under the cup in a way that requires the cup to cut the excess off as it clamps down. That is very difficult to simulate, though it can be done.
By the way, you don't need to put X = 0 on the steel cup because the axisymmetric conditions prevents rigid body motion in that direction.