It seems this feature activates sometimes on small arcs too. I think it wold be better if it happens only if there is a corner on the actual drawing.
If you look at the tool path slight errors in the positioning of the arcs on the outline mean that the tool paths don’t form perfect tangential arcs. You are ending up with corners so SheetCam adds the overcut. You should be able to dial that out by increasing the angle threshold.
Does anyone know if this feature got added to sheetcam after? Would be very handy for me with tab and slot work instead of drawing the dogbones on the cad file manually?
Yes, look for the ‘Overcut internal corners’ settings in your cut operation.