Because I have investigated A-axis behavior a lot of time, I'll try to share my knowledge.
1. Rotate is done every time with rapid feed ratio. This is not good.
2. Mach 3 has no way to know what you want to do. So, you should up the knife before fast moves (G0).
3. G1 move uses tangential control, so knife direction will be decided before linear interpolation.
4. + and - rotates in different directions, but +0 and -0 in absolute coordinates always are +. This is very bad.
So, IMHO you should up the knife, move with G0 to desired position (will not rotate) and do linear interpolation X,Y with very small Z down in the same line. Because rotate will done with rapid feed, position will be exact before cutting. Also, this give smooth start of cutting. Of course, you should compensate in NC file all this.
Probably, this is the possible solution with the Mach 3 current behavior. If your knife is center based to Z-axis, forget for A0 position when the knife is into the material. You will produce holes in some situations.
This is my opinion, and probably I'm on a wrong way at all...