I know I'm beating a dead horse, here...but I promise, I really have searched the forums (and youtube) on this topic, and tried to solve this seemingly common issue myself.
The issue I'm having is that there seems to not be enough tension on the top thread. As in, I can see the top thread, on the bottom of the workpiece. I'll go into what I'm sewing, and with what, and then what I've already tried.
The machine is an 'original' Consew 206rb (the plate with the model # on it only says "206rb", no "-1" or "-5"). It was purchased used, obviously, but had been serviced, and seems to have seen very little use in it's past. There's almost zero wear at all on the bed of the machine. Bearings were re-packed, timing checked. I have no way of verifying that the guy who did this servicing knew exactly what he was doing, but I also have no reason to doubt him. I'm using Schmetz needles, which I only just realized as I'm writing this, are NOT diamond/chisel point. I've been using 135x17 serv7 needles in sizes 21, and 22, with #138 nylon thread. (I'm going to scream if this whole time the issue has been that they aren't chisel-point needles).
I'm sewing mostly light-medium weight leather, generally a 3-4oz veg tan with another thin (1.5-2.5oz) garment leather on top of that. I've also done some sewing with 3oz chap leathers.
With my stitches, the best result I seem to be able to get is to have the top thread slightly peeking through the bottom side on nearly every stitch. I'm also getting a pretty ugly bunching of thread on the under/back side any time I do a backstitch...though changing the feed dog seems to have helped some with that. I've also noticed that the presser feet will not raise higher than about 3/8" (and that's with the hand lever. It barely lifts 1/4" with the knee lever)... when the internet seems to agree that the 'max capacity' for the 206rb is around 9/16", and trying to actually sew anything near this 3/8" thickness results in a HUGE mess of loose top threads on the back side.
I have checked (and adjusted) the bobbin case tension. It passes the "bobbin drop test". I have watched so many videos on threading the machine I think I could do it in my sleep at this point. I've checked, and re-threaded, and checked, and re-threaded, so. many. times. The top tensioner is so tight that even with the presser feet up/knee lever pushed, it's still hard to pull the thread through. Tightening it any further results in broken thread. Loosening the bobbin case spring any further results in risking the leaf spring getting caught up in the hook.
I have changed needles. I have changed the feed dog. I have change the presser feet. I've oiled everything. I've tried different bobbins. I've tried a new bobbin case. I'm just...really at a loss at this point.
Is it the needles? Is it possible the machine is just set up/timed for much smaller thread? The guy I bought it from said he'd never used anything in any of his machines that was larger than #69 thread.
...I think that's all I know to include in this post. Please, take pity on me. I'm still very much in the learning phase with industrial sewing machines in general. And thanks in advance for any help.