Hole Sizes are Wrong

I am having a problem of all of my hole sizes are coming out wrong. If I want a 1/4" dia. hole, and use a .125" bit, it never comes out 1/4". I have checked my calibration in UGCS and Easel time and time again, and it comes out right on the money. I tried using vcarve also and even increased the diameter of the hole by .030, and it still came out undersized. Any ideas what I am doing wrong or what to check?

Thanks for the help.
Ron

I would start by checking the diameter of the bit you’re using.

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And see what toolpath is selected.