I have never found paper tuning to be great method of determining spine myself. It could very well be your grip or a form error. This is the hard part about the tuning process. I use paper tuning for a check of the very basics of setting up a bow. Like is my rest close to centered or am I having any contact issues.
I would try broad head tuning or bare shaft tuning. And if you can't get things to come together then try messing with your spine. And remember it is not always a set in concrete adjustment. Just because it does one thing doesn't mean a specific adjustment will fix it. Sometimes you need to do the opposite of what you think you need to get it right. Release shooting is funny this way since your arrow tends to flex more up and down than it does side to side. Finger shooting from what I understand tends to be more repeatable for these things because the arrow will always leave the bow with a side to side flex to it.
With a release it can depend on the type of release, how you have it hooked, how you hold it and other things.
Maybe have someone else shoot it and see what happens.
Maybe you have some sort of contact issue as well.
And I wouldn't concern myself about a small tear, like an inch or under. You don't need a perfect bullet for it to shoot well. I would move on to the next step of tuning and see what happens. For me it is not uncommon to paper tune for a perfect bullet hole, then go to another form of tuning like broad tuning, group tuning or bare shaft tuning to fine tune it. Then go back to paper tuning and find out I don't have a perfect tear anymore.
Heck I have shot the same bow on different days and got different rips, without changing anything[

]. When that happens it's not a tuning issue

.
Another question would be does every arrow do this? or just one or two that are using to tune with?
Paul