Ok I may have been confused : you were talking about feedhold,
But then mentioned hitting “Pause”:
Are you talking about the Pause icon that’s in between the “Play” and “Stop” icons ?
Or are you using the “Feedhold” button up top ?
The Pause button will just halt movement indeed, but the Feedhold button will trigger a full-blown feedhold sequence, and that’s going to retract and stop the spindle (more details than you would ever care for are available in this thread)