Usual preface, I’m with PreciseBits so while I try to only post general information take everything I say with the understanding that I have a bias.
A lot of this will come down to the material you are cutting and runout. Runout will add to your chipload, so it becomes vastly more important when dealing with cutters this small where you have very little room to absorb more chipload. The material will also make a huge difference here as woods like rosewood and ebony are vastly harder to cut and act more like composites than wood. I went through this related to fret cutting in decent amount of detail a while back so I’ll leave this here instead of repeating myself. Best practice for tiny endmills
I can’t really see the flutes of that cutter in the picture but from the description it is most likely a chip-breaker or diamond-cut router with a titanium variant coating. Those are grinding not cutting geometry tooling and typically rely on very high RPM and low feeds (e.g. 60KRPM at 20IPM/508mm/m). They are designed to cut FR4 and other composites so they may or may not work depending on your material, they will not be ideal regardless.
If you are using rosewood or ebony be aware that any with light colored stripes/striation in it will be much harder to cut. Those are basically glass where the tree integrated silica into the wood.
One other thing I would check before doing any cutting is actually measuring the fret wire. We ended up having to create a range of diameters for fret slots going by 0.001"/0.025mm due to how much extra pressure it took to press in the wire if the slot was too small in rosewood and ebony. As long as you have a smaller cutter though you could pocket it, it would just take more time (and potentially dealing with chip thinning).
Let me know if there’s something I can expand on or help with.