The cut is displayed in yellow. When you select "FLIP SIDE TO CUT" the display does not flip over to the outside like it did before. So now, it displays your cut incorrectly. Is this something that can be fixed to work correctly again, or do we pretend it never worked in the first place? See Attached
Have you tried running with it toggled and un-toggled and it doesn't cut properly? Usually this arrow is indication of what is getting cut:
Which in your case is pointing to the outside.