Inlay Alignment not aligning

Why are you using an inside offset for the pocket? I specifically noted that the same geometry had to be used. Copy-paste/duplicate it.

You need to create a shape which has the same appearance when cut on the inside or the outside — we had a lengthy discussion about this a while back:

This is clearer if one uses a drawing program which will assign strokes/colours:

Imagine if we wanted to create a multi-colour inlay for a file such as:

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