Inlay Alignment not aligning

Did you forget to mirror the inlay?

Note that for this sort of through inlay, it will be necessary to take tool geometry into account (which is why V inlays are more typical)

For V inlays see:

For the sort you are trying to make, you will need to inset by the tool radius:

Apply

and then offset to the outside by that same distance:

Apply

and use this same geometry for the pocket as well.

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