Type On A Path text not sticking exactly to path
When Type On A Path is applied to a circle, some type is input, and the type is rotated by effect (not permanently), the type no longer stays on the path.
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Chia Lynn Kwa
shared this idea
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Chia, this is because Transform effect applies to visible bounds of your Type on path object. It means it counts in your ascenders/descenders. Thus it's not a bug but a behaviour (which is useful in most other cases I personally have.)
You can tame it by grouping your text with a larger concentric circle with no fill & stroke and then transforming the group (that's what I usually do.)