I understood the size dimension was the diameter of the inscribed circle the insert would fit into. Without doing the math i'd guess the example above is 16mm.
(edit.. looking at that again I probably mean 12mm???)
Compared to most guys on here my thread cutting experience in limited but i find it odd that you get such poor results whatever quality of insert you are using. So far I've cut my threads with both an off-hand ground HSS and also using cheapo triangular inserts – with results satisfactory for my purposes (and way better than your first pic).
I had reason to cut a 1.5mm thread to a shoulder recently and it was only 4-5 turns long 38mm diameter and that was done just pulling the chuck around with a chuck key using the HSS. That particular unknown bar gives me a matt finish when turned at any speed/depth of cut or feed-rate I've used with inserts
Are you sure there isn't something else going on like a loose toolpost or poor fit on a quick change tool holder or way too much stickout?
pgk
Edited By pgk pgk on 24/11/2018 00:14:48