The wood threads are loose. I guess I could find a larger insert, but this happens to be in the end of a 1" diameter dowel, so there's not much material left to play with.
The problem was that these inserts were (are) used as a part of a coupling system to connect a series of dowel sections together end to end. Occasional disassembly, if the machine threads have become over tightened, results in the wood threads backing out instead. Once this happens a few times, the wood threads become loose and unscrew more and more often, exacerbating the problem.
Heli-coil in wood?