Looks fine but it’s hard to tell at that angle. If you have extra pads just replace them, they’re like $0.75 each.
Dip a qtip in acohol and go crazy wiping down the bearing seat and bearing post.
I know youve already done that but it can only be a handful of things.
Have you tried turning off and back on again? 
Do not do this, acetone melts PC
(I meant to make this a quote not a reply)
How are you putting your string on? Do you put it over the bearing and then put it back together, or do you loop it around the whole assembled YoYo?
Holy smoke good catch Kyle!! Thank you!! I’ve edited my post. I almost owed the guy another yoyo 
I feel like it got to be the bearing still or maybe the bearing seat needs cleaned with alcohol like mikeydoe said.
This is why I use rubbing alcohol. Works well w/o any potential hardware damage
I would reach out to the seller at this point. I think you have tried every reasonable remedy. It’s possible that the yo-yo is just defective.
Just playit responsive.
I’m going to try replacing the response pads. I’ll let everyone know if that fixes the issue. Thank you all for your help.
Solved! It was 100% a response pad issue.
When I initially lubed the bearing, I got lube all over the outside of the bearing which must have transferred to the seat and got soaked up by the response pads. After replacing them and throwing as hard as possible, I actually dinged the yoyo against the ceiling when tried tugging it back to the hand!
Thank you all for your help in fixing this annoying problem. My yoyo is saved!
Called it 