i'm a low speed guy but,
deflection should be able to trace back to feed/speed error (to low or to high i dunno).
feed is a spindle speed / em diameter / material / machine stabillity related issue and these all go into the math .
machine stabillity is the one i used to under estimate but with these small dia. EM's the feedrates get so low per revolution per tooth that the slightest misalignment ,backlash ,temperature inaccuricy can overload the cutting cappabillities of the EM.
atleast thats what i think the salesguys are trying to make me believe.and i keep buying.
try a slottingsaw these seem to work alot better when it comes to thin slottin or slotting in general but hey ,remember i'm a low speed guy.
make sure the cutter was designed to deliver results to the tolerance you are pushing for ,or you might be chasing gremlins.(I assume you already checked for thoose)
good luck.
Finally CHIPS you can have as much as you can without the doc. complainting about your cholesterol.