Does anyone know why the current version (Build 778) doesn’t honor the fillet when doing an inset? It works correctly for an outside line. I thought previous versions did this correctly but I may be wrong.
That looks correct to me. You offset the vector more than the radius of the fillets, so they became zero radius.
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Perhaps it’s just a difference in my expectation. I expect the inner line to follow the shape of the outer. I get where this is mathematically correct, but I could swear older versions did this differently. I am also getting old and feeble so I may just be wrong. 
As far as I can remember it was always like this. And any other software I’ve used with offsets works the same way.
Purely mathematically, it would end up looking like this, and I’ve seen this in toolpaths that use offsets…
Most offset algorithms auto-trim the corners and any place the resulting curve would intersect itself.
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If you still want the geometry to be radiused, inset it by twice the desired dimension, then offset that geometry by the desired dimension.
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I hate it when I remember things differently than reality does. 
Thanks all.
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