Are you saying that the lathe is producing work which is circular that is not central to the axis it has been turned on?
What is the 'profile' of the DTI reading as the job is turned through one revolution? (could be three lobed for example)
How good is the surface finish, also in relation to the diameter of the DTI probe radius, Are you just seeing random variations in readings as the tips goes over the hills and dales?
If the turned part is truly circular but off centre then I'm baffled.
Ian P