This is much like the Early 115s and 15-30 machines, where the thread goes over the bar, before the check spring.
I was just reading the manual for the 115 and was reminded that the tension on the needle thread should only be regulated when the presser foot is down.
If the tension on the needle adjusted correctly and it still is breaking thread, the next step is to make sure the bobbin is threaded correctly. and double check the tension with the drop test.
Janey - Neat people never make the exciting discoveries I do.