As received, the mini-lathe’s threading dial was misaligned by about 1/4 division, which is nearly halfway to the next engagement point midway between the divisions:
I added the red lacquer crayon while contemplating what to do, because I thought the dial was swaged onto the shaft. It turns out to be threaded, so I marked where the dial should be, grabbed the shaft in the (soft-jawed) bench vise, and twisted the dial with a Vise-Grip until it lined up:
Well, it’s closer than it was, OK?
There’s about that much slop on either side of the index line coming from the loose gear engaging the leadscrew, so that’s as good as it gets.