What your are doing sounds OK and I don't think the bark is wrong.
You say you water once a week, but does it dry fully in that time? Really you want to let the bark look dry all the way down and the roots start turning silvery before you water again. Don't water on a set schedule, but when the plant needs it, for many people that IS once a week bit it may not be in your case.
I have found some small pots don't have enough drainage, I notice you have added some holes in the side, but how much drainage is in the bottom. The holes in the bottom don't just affect draining of the water, but also affect the speed at which the medium lower down dries out. If there are not enough holes in the bottom then it may dry too slowly.
I also notice that down in the bottom there is some sort of white material. Sometimes it is useful to pack out the bottom BUT it may actually block the air flow at the bottom, again causing the medium to dry too slowly down there.
Finally I don't bother
misting the top even if it dries faster at the top, if you mist heavily enough to make any difference that water will seep down to the lower levels and just keep those wet longer.
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