Open your siphon valve some. You want the waterline in your overflow box to settle at somewhere near halfway on the horizontal part of siphon elbow. You have too much water running thru your openchannel. You want it waterfalling down along the inside walls of the openchannel not tumbling and mixing with air on the way down.
Until you get that Watts fitting and route the attached tubing to the appropriate spot, the setup is not going to start properly when you have a power outage or turn off the return pump for feedings or maintenance.
A couple of fingers below the openchannel drain pipe in your sump's water should tell you if there is a slow gentle flow of water out of that pipe. Adjust the siphon valve to achieve that and the halfway mark on the on the topend siphon elbow.
Get the end of that siphon drain pipe near one inch below waterline in the sump as you mentioned. That will help tuning everything to a "set-it-and-forget-it" state that is dead silent. It currently must be louder then **** with the end out of the water like it is.
BTW, I use my 1/8" NPT pipe tap more than any other tap I own. All around the house.