I'll say it again.
Having a transformer with a higher K-factor does NOT increase the capacity of the transformer. It also does NOT mitigate harmonics. All it does is SURVIVE better in a high harmonics environment. Higher K-factor rated transformers have their place and should be used where they are required. THIS WAS NOT ONE OF THOSE APPLICATIONS.
This is a step UP transformer to feed ONE machine that apparently has a VFD on it, no future growth, no neutral loading issues, NONE OF THAT. He got a VOLTAGE DROP on the secondary (in this case the 480V side) that caused his control system to fault, and increasing his transformer size cured the problem, indicating that the nature of his load profile was such that it was overloading that 300kVA transformer and causing the voltage drop. A 300kVA transformer is rated for 360A max, his loading per the machine data was 354A peak, it was just too close to the bone, a slight voltage drop on the 208V side (which with a 354A load is a LIKELY outcome on a 208V service) and you don't even have 360A capacity on that transformer. 400kVA was the way to go, and what do you know? It solved the problem!!!
Bringing those other issues into the fray has caused nothing but distraction and confusion.