Needle not grabbing bobbin thread

[P56]

 

Hello, I have already searched this forum and none of what I found helped, I also posted this here under sewing if one needs to be deleted feel free. 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? 

[Wizcrafts]

A #23 needle is the right size for #138 thread on the top and bottom. Look closely at the leather under the needle to see if it is lifting with the needle as it ascends. This almost always causes skipped stitches. If it is lifting, add more foot pressure.

Inserting the needle backwards has the same effect. Make sure the rib side is on the left and the scarf side faces due-right.

If the check spring is set  wrong for the work, it can cause skipped stitches. The bottom stopper should halt the downward motion of the check spring as or just after the tip of the needle enters the top of the work. The longest it should allow downward motion would be as the eye shows just under the bottom layer. The other settings are spring tension and slack adjustment, via a set screw inside a curved slot. Try changing the position of that screw.