Overexposing the paper, most likely. Try exposing a few stops less.
As long as it's only hydroquinone, I can still see it work.
If you're concerned about the incorporated developer, try exposing a sheet, then rinsing it in water a couple of times, and then developing it in a lith developer of your choice. The repeated rinsing should get rid of (most of) the incorporated hydroquinone.
An alterantive approach is to brew a lith developer without hydroquinone and using that on the paper. This means essentially only an activator (e.g. sodium carbonate) and some restrainer (potassium bromide). It's worth a try. Don't pre-rinse the paper; expose and go directly into this developerless-developer.