OK, that's what I'm seeing, and your suggestion works, but the Mach3 manual (Version 1.84) says:
Section 6.2.7.2 FeedHold
The Feedhold button will stop the execution of the part program as quickly as possible but
in a controlled way so it can be restarted by Cycle Start. The spindle and coolant will
remain on but can be stopped manually if required.
When in FeedHold you can jog the axes, replace a broken tool etc. If you have stopped the
spindle or coolant then you will generally want to turn them on before continuing. Mach3
will however, remember the axis positions at the time of the FeedHold and return to them
before continuing the part program
Which is quite confusing, and NOT what Mach3 is doing.