Sorry for the late response. But I got it figured out, well, at least the mechanical part.
For some reason the mach3 won't take any backlash compensation values.
I tested the backlash using a dial indicator gauge, I'm getting readings of 0.03-0.06mm distributed between all these axes. However, when I enter the values in the mach3 backlash settings nothing happens.
I have tried it using the default 20% all the way to 100% without any changes within the dial gauge reading.

Is any of you guys is using the backlash compensation?
I am using pokeys57cnc as a motion controller.

As always, thanks in advance!