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Appearance of drilled hole in Simulation?

In this lesson 8, simulation results in the drilled hole showing as a grayish plug but not as material removed. After lesson 9 with the contour cut, the hole shows thru in the quadrant that is outside the contour line, but remains a gray plug in the interior of the part. Side view shows full diameter of drill thru the material. Why might this be?


Picture of Appearance of drilled hole in Simulation?