two lines ending close to each other Mach 3 will connect them
Yes there is a tolerance setting that you can set. Tolerance is defined on Page 16 of the Manual which you will find in the Members Docs.
I may add, you do a drawing in CAD ...but....your drawing should reflect how you want to machine the part. All explained in the manual.
Hood answered the other question. Occasionaly you may get an unwanted circle even though Mach's settings are correct, and just delete it.
You should always check / step thru the gcode before deleting it.
RICH