clark welders

Is it possible that by welding on 3/16th steel is too much for this thing? It's supposed to be good for 3/8th

That machine should handle 3/16" without issues I would think.

Loosen up the driver and pull some wire through by hand to "feel" for hang ups.

Is your ground cable clamp and it's connection to the cable tight?

Have you tried welding on some "different" steel and seen the same results?

Shut the power circuit down and check welder plug for loose connections along with the outlet and breaker.