What did we do wrong? I can only think that it has something to do with the Z height. Can we finish this?

So long as it’s still clamped in place and you haven’t changed the zero it should be salvageable.
First question is how does it compare to the 3D preview of the toolpaths?
If things match, then the problem is the 3D model was modeled thicker than the Stock Thickness. Increase Stock Thickness so that no red shows, then re-cut the file after regenerating the toolpaths.
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Yes, the relief was for a 1.25” and we did it on a 1.04”. We are rerunning it after we set Z zero to about 3mm further down than we had originally set it. It is coming out decent. Still 30 minutes away.
