@BURLMAN
So it would seem, from your reply to my suggestions above, that the refills you're presently using have the correct length.
ONE thought .....
It looks like the excessive protrusion of the refill is roughly a millimeter or so . . . about 0.040" +/- . . . perhaps a bit more.
Researching the correct brass tube length . . . . thinking that maybe PSI provided the wrong brass tubes in those Art Deco kits.
I think that's an unlikely possibility, but it might be worth checking . . . . with approximate . . but close . . actual measurements on the pens.
I checked the PSI instruction sheet. . Usually they specify the brass tube length . . . . but not in this case ( Art Deco ballpoint ).
However, the length is stated in a file here in the IAP Resources . . . which gives the length as 1.991" . . . darn close to 2.00"
Great Listing from Tony from 2015 of PSI tube lengths. Click here or on the image below to download the PDF. Author: Tony from PSI
www.penturners.org
If you have a good set of calipers . . . and without disassembling the pens . . . you should be able to measure the barrels on the above pens.
IF there is a discrepancy . . . a phone call to PSI would be in order . . . not that they can do much at this stage, other than replace the kits.
*****
SECOND thought .....
From the instruction sheet, I get the impression that the transmission screws into the top end of the COUPLER piece.
IF disassembly is possible, and the COUPLER is removed from the pen barrel . . . . . a "washer" of the correct diameter and thickness
could be placed over the lower end of the COUPLER, effectively adding length to the barrel.
But you'd want to be sure lengthening the barrel in this way wouldn't be problematic in the future when replacing the refill.
One thing you'd have to be absolutely sure of is that the present refills are indeed the correct length, and match a "standard Parker".
*****
THIRD thought ..... re: your own thought "I'm considering using some blue loctite and backing off the twist mechanism a turn or two."
Before you do that, you'd want to be darn sure that your refills are the correct length . . . thinking ahead to future refill replacement.
Just trying to think through the problem you are having . . . . rather a tricky one. . . . I think a phone call to PSI would be appropriate.
I hope you will inform us of what "solution" you eventually come up with, John.