_convertExtrusions
for the hollow cylinder … looks like it is of object type extrusion - and this type does not follow all meshing parameters to save performance - the main issue for this objecttype.
If I skip the Tube Tool, extrude a 2.1" dia cylinder from a round surface, drill a 2.0" dia hole in the polysurface and mesh with the same parms, it works.
No, as @Tom_P suggested, Extrusion objects have their own special meshes that do not respond to all the custom meshing parameters. Converting them to polysurfaces will fix that. Cutting holes in or otherwise modifying extrusion objects will automatically convert them to polysurfaces, which is why your cylinder to tube method works.
You can also turn off the creation of extrusion objects entirely by running UseExtrusions and setting the option to Polysurfaces. I highly suggest doing that unless you are an advanced user who actually needs that kind of object - most people don’t.