Are you viewing the results with any kind of a deformation scale? Even a small scale increase can make some deformations look a lot worse than they really are.
I'm not viewing it with any deformation scale. I do expect some separation between the two materials in my simulation. What I am curious about is why do the results show partial interference and partial separation in other areas.
Can the program not distinguish between interference and shrink fit in the results? Is it ok to assume that there is material compression/contact at locations where the two materials interfere in the results?