First, check that there is no dust, foam beads, shaping or glassing residues in the grub screw keyhole, preventing the key to go all the way.
Use a pin to scrape the inside. I do it on all my new boards. Most boards have at least a screw with some crap in them.
As the keys are made of a soft metal on purpose (as not to damage the screw when overtightening), if they dont fit fully they will deform and not work anymore.
Otherwise, the FCS box plastic threads have been damaged at the factory (it happens when sloppy workers "clean" the screw holes with a driller). You must (have it) repair, see
www.seabreeze.com.au/forums/Stand-Up-Paddle/Review/I-have-a-loose-screw/ . It should be covered by the warranty.
PS: I recommend having a set of spare FCS screws, and changing any screw if you fell the key doesnt go all the way but cannot clean the hole. (resin drops, badly molded screw)