When doing a 2 bit carve, will the Xcarve stop its self for the bit change and also will I have to reset the z?
Yes it should run thru everything the first bit is to carve go back to your work zero and stop. When you change the bit you will need to reset your z axes.
Be careful you don’t move your spindle when changing bits. I had to do the torque reduction on my motors so they would hold and not move on me when trying to loosen/tighten the collet
Look at some of my two stage carving videos. Here’s one to get you started