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I think the threaded collar applies pressure to the sending bulb itself, so the threads shouldn't be an issue.
is the threaded collar tight? There shouldn't be any movement of the sending unit in the head when the nut is tightened down
I'd remove everything and clean well - the underside of the sealing lip on the sending unit and inside the hole in the head where the sending unit seats. Maybe try one of those cylindrical wire brushes used to clean inside 1/2" or 5/8" copper sweat fittings. You might have to wick some water out of the head to see interior sealing surface
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