Getts you some lube on the gasket, including the inner diameter (am I the only one missing the Johnny speak here?) so it doesn't bind on the threads and travel up the thread, cocking the gasket with the thread. Push the gasket fully into the nut, past the threads. Push against the electrical socket with your thumb to prevent the gasket engaging with the thread. With your thumb pressing on the socket, then turn the nut. Give that a go. Might be lucky.
If you have the gasket off, check there is no split between flange and sender in case sender goes off right angles, causing the coned part to jam in the tank opening, preventing the nut from compressing the gasket, or all around the gasket.
When it's installed does the unit feel solid inside the tank, or a bit wobbly, in which case maybe it can be straightened to tighten some more.
The gap between the lower flange and the nut is a hint that the gasket might be engaged with the threads.