The paper towels are probably going to dry out too fast. Put a couple of wet sponges in. The problem is when you take the lid off you are going to lose the humidity already built up so do it fast, get the lid back down and leave it CLOSED. It will take time to see the increase on your hygrometer. With your temp being the low the whole time your hatch is going to be late. With a still air incubator, you need to incubate at 101 degrees and you've been at 97 degrees. Some of these eggs may still be salvageable. I know it is hard but give them time.