Hey Jonathan,
since using the touch plate means closing an electrical contact, the error must be in the connection. You could
- make sure the the inside of the taper in the collet is clean of any baked wood dust
- same for the bit shank
- the connector at the CNC controller has no error (unfortunately these Molex/Amphenol connectors only have tin-plated contact and the plating is thin, so after exposing the bare copper of the contact to air, there could be corrosion); also the crimp could be unsatisfying or have become loose
- the magnet end and the banana plug end of the cables have no strain relief and the cables are known to internally break after a certain time; you can get replacement at Onefinity or at the manufacturer Triquetra