When I run it the grid will stay on or off as expected. The drill styles also cycle as expected.

Note that the drill cycles are modal, once in effect they stay on until ended. So its normal to see code like this:

G81 X-2.5 Y-1.5 Z-0.50 R0.1 F15.1
 X-1.25 Y-1.5
 X0 Y-1.5
 X1.25 Y-1.5
 X2.5 Y-1.5
 X2.5 Y-0.5
 X2.5 Y0.5
G80

the first line sets up the drill cycle, with the peck depth, final depth, etc. Each following line causes a repeat drill cycle at the new X and Y coordinates. The final G80 turns the mode off.