Hey Burr,
Great video! That is exactly correct. The Z Level Rough (and Advanced Rough) toolpath is a material removal toolpath and will create a new pass at each depth using the given Depth of Cut.
If anyone wants more information about how we process depth of cuts in the toolpath (for Z Level Rough & Advanced Rough), you can read this document I made: Create Final Z Level Pass Down to Allowance.pdf (664.1 KB)
With the case in the video, because the model is slightly off (based on the origin location), it does not machine the floors like you say in the video. You showed the correct fix in that scenario perfectly. Thanks for the input! Appreciate it very much 