I'm not seeing any issues with it. If I load it into UGS, OpenBuilds Control and into NC Viewer, I can see in all 3 previews that the z retracts before moving to the next hole. Question, does it not retract at all for you? I'm only asking because 1mm retract isnt that much and if your Z0 isnt set perfectly, there's a possibility that it could not clear the hole before moving. I know you explained the behavior above, but I think it worth clarifying.