After reading your post at lunch time I took a couple of extra photos of the parts I was working on this afternoon. It's a conrod but has a hinged big end with single bolt rather than the usual two. So for the "hinge" a slot 0.250" is required in the cap and the rod end needs reducing each side to leave a matching male part.
I tend to set up most work by touching one side with the edge finder and zeroing theDRO, then touch the other and press the "half" function which gives me the ctr line and that is what I did here. As I'm making both parts I simply used a 3-flute 0.250" cutter to form the slot cutting in one direction, lowering the cutter and then back the opposite way which until required depth was reached.
The rod was then clamped to teh same angle plate and the existing ctr line used to cut in from each side until the DRO read 0.260" that left me approx 20 thou oversize. Checked thickness with digital callipers and it was 0.270 – 0.2705" so took a cut down each side at a DRO reading of 0.250 and trie dthe cap for size. It went on part way but got tight so took a cut each side at 0.2498" and almost on. final cut each side at 0.2496 and fit was good being self supporting but not excessively tight
So I had to offset by 0.0004" or 0.01mm on radius which is 10 times better than the 0.1mm that your 0.2mm under diameter cutter is giving. Allowing for the fact I'm using "standard" quality ER collets and an imported ER chuck in an imported machine there is likely to be some spindle run out too so cutter may only be off by half that or less.
I would not have taken this last dimension as the "fit" was what mattered to me but looks like things were about right.
From that I would say my cutter is maybe 10-20microns under diameter and the slot cut on size as even with a 3-flute cutter you can get a slightly oversize cut. A lot of the time I'll just use the DRO to the reading eg 0.250" and that's good enough for a lot of parts, just take a bit more care where it's needed like this hinge that I wanted to have minimal plat
Edited By JasonB on 21/08/2021 16:54:55