It sounds like one or both finishes have sat on the shelf too long. Was the walnut virgin wood or did it have any prior finish? If it had a prior finish, what did you do to remove that finish?
What is the specific General Finishes product do you mean by "Topcoat Oil & Ureathane"?
A final note. Steel wool is poor way to do between coat sanding. Flexible abrasives like steel wool or non-woven pads do not flatten the surface. Rather they will ride up and down over the uneven surfaces never making them flat. Between coat sanding of flat surfaces should be done with 320 sandpaper mounted on a flat, felt or rubber surfaced sanding block.
I would like to see the answers to the above questions before I suggest the next step. You could probably get started by using a chemical paint stripper containing methylene chloride and removing the existing finishes.