So, I'm new to using composites in Solidworks, and I can't for the life of me figure out why I am still seeing penetration on my results. 

Initially, I wasn't sure if my mesh was too coarse, so I tried extremely fine mesh (<0.2mm), but still had the same issue.  I've also tried a global no-penetration constraint, but that didn't work -- I read somewhere that if there are initial gaps the global contact doesn't work, so I assumed that was why. The way this component is designed, there are layers of Carbon Fiber that are moving vertically, kind of like a spring, so I need one layer of CF to 'bottom out' onto another layer. 

I then tried applying individual contact sets for no-penetration.  I created one for every edge and surface that could possibly interact, but I'm still getting the same results (with penetration). I double checked that this isn't just a deformed-scale issue; the deformation scale is set to 1.  

Can anyone advise me on what else to try? Is there an issue because it's a composite analysis, so it's using sheet bodies?  I've never had a problem like this before with solid body simulation.