I hate to say this, but 207 cannot tolerate a high degree of moisture while curing. I used the same thing as you for the britework in the boats
salon. There was one day when the same thing happened. I waited and waited for the cloudiness to go away but it never did. I ended up
sanding off the worst of it. I now keep a
heater going overnight so the air does not get close to the dewpoint when I do britework so this does not happen again. Also, make sure the moisture content of your
wood is low as well. Yes I know, you are not supposed to run
electric space heaters in boats when you are not there....I take my chances overnight so the stuff cures properly.