The magnetic saturation is 1.7 T for magnetic steel, this is correct. But have you calculated
the actual operating flux density for this transformer?
If your secondary winding is only the red exterior wire which covers about 2/3 of the toroid surface, it is very loosely coupled.
To verify my statement, you may want to perform a transformer characterization via the open and short circuit tests, for instance:
These two transformer tests are performed to find the parameters of equivalent circuit of transformer and losses of the transformer. Open circuit test and short circuit test on transformer are very economical and convenient because they are performed without actually loading of the transformer.