Did I buy the wrong machine? (X-carve 1000mm)

The machine is capable of full 3D but you need a software tool chain that supports it and a ball end mill. You need a CAD, CAM, and machine control package.

Here are some options:

CAD/CAM
Fusion 360
Aspire

CAD
Solid works
Autodesk Inventor
Pro-E
Onshape
Tinkercad
Freecad

CAM
Cut 3D
MeshCAM
MasterCAM
HSM Works
Del CAM

For machine control you can download universal gcode sender for free.

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