Is my wasteboard file broken, or bad setup?

Please check the machine mechanically:

It is also important to be sure that the collet is correctly tightened, the endmill fits correctly and doesn’t slip, and the router is mounted securely in the mount, and that the mount doesn’t shift.

Also feeds and speeds may be a consideration: https://docs.carbide3d.com/support/#tooling-support and see https://www.youtube.com/watch?v=S9bceJxpqG0 for concepts on this and https://www.precisebits.com/tutorials/calibrating_feeds_n_speeds.htm for a testing technique and see the series #MaterialMonday: #MaterialMonday on YouTube

Beyond that it’s usually a matter of Calibration and Squaring the Machine c.f., http://docs.carbide3d.com/shapeoko-faq/how-to-calibrate-the-machine-for-belt-stretch/

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