Static Simulation: How do I troubleshoot high von Mises stress at PEM nut?

I have two sheet metal parts: a front panel with PEM self-clinching nuts (S-256-2ZI) that is 16 gauge and a base that has countersunk screw clearance holes for #2. The simulation shows low stress with the exception of a high stress point at a PEM nut.

Stress hot spot analysis indicates that a stress singularity is detected. Is this a typical result for PEM nuts? Should I leave it alone for add a fillet to the nut?

Edu ​​​​​​​