I just checked and yes, I guess sometimes it IS too low.TV Tropes claims that "In the needle-threading microgame [I assume "Right in the Eye" from the original] in Mona's stage, sometimes the needle is placed too high or too low to thread, making that game unwinnable. " but I haven't been able to confirm this
This is so weird! In all of my years of playing this game I've never had that happen to me!