Dave,
Please see my setup. I don't close the box' lid at all. During the day I allow the cuttings to have some sunshine (#2), during the night the box is on a heating pad (#1). The gap is about 1/2 inch.
The humidity meter has 2 sensors, one on the wire inside the box and another is on the display itself. The humidity outside the box hovers in 32-40% relative hum., inside the box it is 75-95%. I add the water inside as it evaporates (usually every 2 days).
The temp. is in the range of 70-75 F. The cuttings are quite happy, the cups are full of roots!
I don't water the cuttings.
So, in your situation, maybe you have too much moisture?