I think the issue is with max refiled step. Try increasing the max refined step.
"It is important to note that during the meshing process, if the meshing algorithm reaches
the value set by the “max refine steps” and the target level of refinement specified
by the global and local mesh constraints has not been achieved yet, the mesh refinement
will stop and the resulting mesh may not be adequately refined.
It is recommended to increase the number of max refine steps as you change the mesh constraints
toward a more refined mesh"
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