[Help] overlocker tension, what am I doing wrong? Sewing Machines Parts and Sales in Los Angeles

My neighbor gave me a Toyota Differential SL3455DS because she has upgraded and didn’t want this overlocker anymore. I’m having trouble reaching the proper tensions and when I think I got it the “loop” doesn’t look quite right is there

https://imgur.com/a/7jX7e

Here is what it looks like on test fabric. I’m not sure if it’s the facto but it doesn’t so this crazy thing on other fabrics just on the lining fabric I tested it on. Can anyone help?