Because one or both of the starting materials is being consumed, I presumed that a reaction must have been taking place. Further, since phthalimides are notoriously base labile, and water has a low MW, even small amounts of it could lead to opening of the imide ring. Even though only a small amount of water is present, it also depends on the concentration in the reaction. If you assume 0.11% of DMF is water and if this can completely hydrolyze the phthalimide product, what is the stoichiometry of this reaction?
Since it appears as though the reaction is working, or at least your starting material is being consumed, I'd try anhydrous DMSO.