Bobbin not grabbing needle thread

[P56]

Hello, I have already searched this forum and none of what I found helped. I am running a JUKI 1541s, when I insert a new bobbin and rotate the hand wheel the needle will pick up the bobbin thread. Once I start sewing it will no longer pick up the bobbin thread, just leaves a nice row of empty holes and the thread in the needle is frayed like crazy. When I take the plate off so I can see the hook and turn the hand wheel it seems to work fine, the hook picks up the thread every time. I have re-threaded the machine, changed the needle (135x16 size 23), lubricated the machine including the bobbin and hook, checked the hook timing and spacing, the hook is turning so its not clutch issue. The needle is in the correct way, I am holding the thread for the first few stitches, I have played with both upper and lower tension. Any ideas? So frustrated!!!!! Could it be the needle is to big? I am currently running Mandala bonded Nylon #138 with a #23 needle. I have ordered smaller needles, but could that be the issue?