What goes wrongSanding too aggressively at a given grit strips the thin lacquer film back to bare wood, making the piece appear to have lost its finish. The OP initially misread the pale cross-grain / dark end-grain contrast as a mistake in their technique. Both are normal: the former is a matter of over-sanding a very thin coat, the latter is an inherent optical effect of the first coats on open grain.
What recovers itFor over-sanding: simply reapply a coat of lacquer and sand more lightly or advance to the next grit once the current one has done its work. For the grain contrast: continue the sand-and-lacquer cycle; the contrast softens and the grain detail in both directions becomes more visible with each successive layer.