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I'm surprised no one suggested this... it appears that you're seating your belly grommet after going through all your other precautions: sealing, sanding, etc. The simple act of driving the flange's lip flush to the lure body breaks your primer/paint "seal" and creates a potential water invasion point. Water gets behind the sleeve and collects under the flange... unless you apply some epoxy to the swivel hole and under the grommet before seating.
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