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-- Axis driver Alarms
-- Each motor driver has an alarm line that goes high
-- if ********* goes south
-- Stop machine and recover using external reset switches
    [mc.ISIG_INPUT9] = function (state)       -- X Axis
        mc.mcCntlSetLastError(inst, "X Axis driver ALARM - STOPPING")
		eStop()
    end,
    [mc.ISIG_INPUT10] = function (state)       -- Z axis
        mc.mcCntlSetLastError(inst, "Z Axis driver ALARM - STOPPING")
		eStop()
    end,
I wouldn't feed hold - I'd eStop.
Driver alarm means "I tried to get to the commanded move point but didn't get there" so you have lost positioning and something is very wrong.
That's a "shut everything off NOW" situation.