I keep running into this issue where I use Follow Me on a circular path and the surface gets messed up. The path is symmetrical, as I used the circle tool with high resolution, but it still doesn’t work. I’ve attached a file with the component I’m trying to make. Please let me know how to fix this! Thanks 
FollowMeError.skp (100.3 KB)
Followme is trying to create very small edges on the curved top of the shape, and SketchUp is losing them. The situation is actually aggravated by having so many edges in the path you are following, as this causes very narrow wedges in the top surface. You can confirm this assertion by selecting the circle and changing the number of edges in the Entity Info window before doing your followme. The number of issues will decrease as you use fewer sides and will go away if you use something like 24.
But to retain your hyper-smooth curve, try this: Create a component from your stuff, move a copy of the component aside, and scale the copy up by 100. Zoom extents so you can see the huge copy. Then open the copy for edit and do the followme there. You may still see some edges in the top that don’t get softened. But when I tried this I could erase them without losing any faces. Then delete the enlarged copy and zoom extents so you can see the original. The small edges problem occurs only when you are adding new edges or faces to the model, so it survives the transition from the huge copy to the original.
Thank you so much for looking into this and explaining what’s going on! I’m going to try it out now!!