Well, I discovered the problem and I am sorry to say that it was caused by my lack of skill.
Given the information received from everyone, the problem seemed to point to the pallets, or a single pallet. I knew they were not cracked but I removed the fork and took a closer look and saw that there was some oil on the top surface of the exit jewel, which made me think that I may have put too much oil on the jewel as well as a poor job of oil placement. I cleaned the fork once again and placed it back without re-lubricating and got a nice clean trace!! After cleaning the whole movement and parts once again, I carefully oiled the exit jewel and still have a nice clean trace on the TG. Success.
The moral of this story: Get better at oiling pallets!
Thanks for all the help and suggestions.