You might want to check you nut slot where the B string sits instead of putting cloth in it in fact taking the nut out and putting a new one in sounds like a good idea.
For now loosen off the B string then on the string where it fits in the slot
coat the string underneath with the graphite of a pencil.
Then tighten the string to pitch, play a little then loosen the string while pulling up on the string from the sound hole side (to avoid letting the graphite contaminate any part of the slot it has not lain on.
With a magnifying glass have a look at the slot and see whether the string has sat in the slot properly ( the graphite off the string will show you this) is the graphite apparent all the way from the back to the lip (soundhole end of the nut?
The sound hole lip being the most important
The slot may be too narrow the slot may be high at the back so the string does not touch the slot sound hole lip etc etc.
Grinder
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