@danielanyg this also happens for me. You need to make it tight, then it slides up and then you to pull it a little bit down with your fingers, so it fits where it needs to sit
Thnx for this turorial! ❤️ I did something similar with pattern #72038 but used shaping, so the back looks nice too. In this case it was a tiny keychain and not an applice, so thats why....