In nonlinear analysis the mesh quality should be excellent: totally avoid the use of TET or WEDGE 3-D solid elements, instead use brick CHEXA 8-node elements.
You need to prepare the geometry imprinting arc curves in the circular holes using commands like GEOMETRY > CURVE- FROM SURFACE > OFFSET CURVER/WASHER and PAD, specially in the contact region the 3-D HEX solid elements should have a perfect quality!!, this is the way I run ... use always command TOOLS > CHECK > ELEMENT QUALITY before the analysis, all elements should past the basic quality checks, OK?.
Thanks for the answer. When the corrected grid (with high quality) settlement comes to an end only if the elements are created large grid, with fine mesh size elements occurs calculation error