I have this same problem. I had a new tub wall insert put in. The copper supply pipe is too short. I have the second type of spout shown above. It has an Allen wrench set screw. I think what is happening is the pipe is not making it to the O ring and water is bouncing back. I can't solder a new pipe because the wall is fiberglass and might melt an ruin the whole wall insert. I have tried a second O ring and Teflon grease, but still have a terrible leak. I also tried a different spout from Home Depot, but it leaked too. Any other suggestions? Thx.