Certain materials, like engrave-able nameplate plastic, have a thin white layer on top of a thicker dark layer (or vice versa). The “Engraving Depth” value tells the GCode generator that it has to plunge at least that deep before a hole begins cutting into the second color. It acts as a depth offset for all hole cuts. If you’re cutting through something really thin, like paint, it’s not necessary, but if your material has a 1mm top-coat you probably want to use the setting.
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