Are you using this version that is designed for 16/22 hose fittings?
Photo from Google Images.
The bubbles do look abit large (compared to what i've seen from a unit in use before)... though the ceramic material in this reactor system doesn't seem as fine as the ones in the Up Aqua atomizer system, so the bubbles wouldn't be as small (not the misty type).
Maybe check the seals around the ceramic portion and see if there are any larger bubbles leaking out, these issues tend to be quite common in inline diffusers which use ceramic tubes.
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