Don’t use cylindrical support on the face of a hole in a solid body to represent contact with a rod of a slightly smaller diameter because a cylindrical support applies forces over the entire circumference where contact with a rod only occurs over a small section of the circumference.
The most accurate simulation is to model the cylindrical rod, apply fixed supports to the end faces of the rod and use Frictional Contact between the cylindrical faces of the hole and rod. This configuration is more difficult to obtain convergence on because it is a nonlinear solution.
A step down in accuracy, but a lot better than the cylindrical support is to exchange the support and loads so that the total force that goes through the lift padeye is applied to the cylidrical face of the hole as a Bearing Load. This load includes a load direction vector and the software takes the total load and applies it to only the 180 degrees on the “contact” side of the hole using a cosine law so that the amount of force parallel with the load direction is given a weighting factor of 1 and the amount of force at the +/- 90 degrees from the contact point ramps down to zero using the cosine of the angle around the hole. This means there is zero load on the side of the hole opposite the contact side and you don’t need any nonlinear contact to achieve this. Since you are applying the force at the padeye hole, you need to support the frame far from the hole. Using a Remote Displacement (behavior = Flexible) and setting all 6 DOF equal to 0 is a good way to spread the load over the selected faces of the frame.
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