Ah-Hah! More balloon than mush.
I suspect you’ve got an offset for Kerf that’s Huge compared to what’s actually happening. It moves the line outward to make the finished cut piece fit into place.
It’s used for cutting boxes and doing marquetry. You’ll find that switch in Cuts / Layers and you’ll likely have success turning it off.
Here’s a better explanation from a while ago. The switch you need is likely similar.