When you thread the top thread, be sure to ALWAYS RAISE the presser foot. Tweak the top tension until both threads meet in the middle of the fabric. This will usually take care of the loops on the bottom side of the fabric.
It is called bird nesting and is the result of the needle thread tension being too low
recheck that the thread is between the tension plates and not behind them
or disregard the settings and set ti manually
as if you are going to thread the needle , pull the thread and there should be a reasonable amount of effort needed to pull the thread
If there is not resistance to the pull then the tensioner is not applying the necessary tension
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