In this situation I would use G92 because it is possible to exactly control the cut depth on each pass.
I would also be tempted to go faster rather than slower. I have found 1018 tends to tear badly at slow speeds. However, when thread cutting sometimes you are limited in speed because you exceed the rapid capacity of the machine when the tool is retracting; but I would try faster and see what happens.
Also I would look into getting an angled shim for the toolholder. A large pitch thread has a high helix angle and sometimes this means the tool does not have enough clearance. It needs to be angled so it matches the helix angle better.
An open mind is a virtue...so long as all the common sense has not leaked out.