Looking at the uncertainties on your k value, I don't think this is purely a statistical artifact. I do find it interesting that your fuel assembly is pretty subcritical, but that shouldn't be causing this significant of an issue.
Without more information on your model, my initial reaction would be to check the convergence of your fission source for the fresh model using
the Shannon entropy setting. I would also like to repeat Khurrum's comment on using other time-integration schemes (CE/CM, CE/LI, etc.) The predictor is conditionally stable, meaning sufficiently large time steps can cause instabilities and inaccuracies. If you are able to use one of the other
integrators, please reach out with an update.