Vetric is putting out code that for the most part cannot be done based on the resolution of your machine. That arc is an .0001" arc which is probably Less than your machine can move it one step. For the most part Mach3 can absorb those type moves BUT it being in an arc call it does not seem to be able to absorb the move and continue.
You should be able to set the CAM to not do such small moves. Then repost and try it.
Just a thought, (;-) TP