What should I do if the upper thread tension is too tight or too loose?
If the upper tension is too tight, loops will appear on the surface of the fabric — reduce the tension by turning the upper tension control dial to a lower number. If the upper tension is too loose, loops will appear on the back of the fabric — increase the tension by turning the dial to a higher number. If rethreading does not solve the issue, also check that both the bobbin thread and upper thread were threaded correctly. (Page 1)
From the official Brother XH2164-001 Computerized Sewing Machine manual, page 1
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