Looking at the xml's I dont see a problem although you have Enhanced Pulsing disabled, is there a reason for that?
I presume the DROs are showing correctly so cant think how I can test but you say circles are 1mm smaller, is that both X and Y or are they oval?
Wonder if using G51X-1 at the start of the code and a G50 at the end would be a better way for you to reverse things, would that be possible with the way things are set up?
I will look again at the xmls and see if I can pick up on anything.
Hood