Have you checked continuity between your slider and the coil with an ohmmeter? In your pictures it is not clear how thoroughly the insulation has been sanded from the coil, and an oxide coating on the slider may also be an issue. Even with some level of continuity, a significant resistance in the contact will reduce the Q of the circuit greatly.
I wouldn't worry too much about shorted turns. It isn't ideal, but it doesn't seem to totally kill operation. This method of tuning was widely used in crystal radios of the 1930s to 1950s and didn't seem to cause much trouble. It certainly didn't harm the example I built in the late 1950s and my slider was much wider than yours.
From a theory standpoint it removes some number of turns from the coil (changing the inductance by a small percentage, and adds one or more low inductance (single turn) coils magnetically coupled to your main loop in a step down configuration. These parasitic coils are "tuned" by whatever stray capacitances are around, mostly the coil to coil contribution and probably resonate far higher than your main circuit. Unless Murphy strikes and this resonance is harmonically related to the frequency you are interested in it seems unlikely to be impactful, again consistent with the experience of thousands of these configurations historically.
As another piece of evidence that it is not a huge issue, I once had access to a US Navy WWII radio receiver that used variable inductors for tuning. A complicated bit of mechanical gadgetry, the coils were about 3 to 4 inches in diameter (75 to 100 mm), about 8 inches long (200 mm) and were made of some hard silver plated wire, spaced about a tenth of an inch apart. The mechanical contact with with coil was a slider that spanned two turns. As the coil was rotated by a gear train the slider moved along the coil, always shorting the turn under the slider. A lot of engineering obviously went into this radio, and it worked well enough to be produced, so the shorted turn wasn't a deal killer.