The calibration of the camera provides compensation information to the program, in order to accurately present the overlay relative to the cut list. An easier reference for me to provide is how I’ve used those adjustments.
The overlay presents my test cut, a simple rectangle. For argument’s sake, it’s a series of rectangles horizontally (and/or vertically) that are cut in the work piece. A refresh of the overlay shows that the left side is spot-on, but the right side is a bit short. I can “stretch” the right side by making adjustments to the width.
If both the left and right side are shifted to one side by the same amount, the x-shift feature allows me to align them to match.
You could have a perfectly sized circle but it’s not in the right location, that’s shift. You could have a too-large or too-small circle but centered nicely in the reference of the cut list. That’s width/height.
Depending on the placement of the camera and the work piece, you may get shift when adjusting the width but it’s a set of diminishing adjustments and how much Sheldon Cooper you want to inject.