So, I think the ‘chalky’ is the dye - I think the water is evaporating before the die really stains the wood. Even after a week, if the surface gets wet at all the color comes off. I have a water based acrylic that is brush-on, and the brush gets plenty of color on it.

I get little bubbles in the clear coat. 2 or 3 different hardware stores mentioned letting the stain dry, so I think the dye is sitting on top, then getting wet again when I put finish on, and hence the bubbles trying to escape through the clear.

“So close, and yet, such a long way to go...”