The screws should hold the gib strip in its vertical position, it doesn't need to be right into the corner, although that shouldn't do any harm if the corner of the strip is rounded/bevelled off so it doesn't bind.
Not many images of real end-on gib strips on the web! Those I found seem to be held by their screws and not forced into the corner.
This example (on an Emco by the look of it), doesn't touch at top or bottom.

Looks like this one has had turcite strips fitted, but the gib (which might be a taper type) doesn't contact them.

But this one does!

I found THIS where someone cured this problem by putting better points on their screws. There are two photos and you can see that in the 'after' one the gib is not contacting at top or bottom.
If I recall correctly, George Thomas fitted pins to the gibs on his Myford S7 and reported a significant improvement.
Interestingly, it seems some other mini-lathe owners have had the issue and solved it with deeper holes for the screws. Also, its clear that there are lots of different detail arrangements for the machining of the dovetails, although not everyone means the same machine when they say 'mini lathe'.
Neil
Edited By Neil Wyatt on 30/07/2017 20:53:04