Outline not behaving as expected

[mattydboom]

I have found that the Outline trace function does not generate the desired path for some projects. See below example. The 'expected' path shown in Green, but the 'actual' generated outline path is something more like that shown in Red.

I suspect this an issue with the inner tool path island, but as this is not uncommon of a typical job & otherwise is just a simple rectangular shape, I would expect it to be dealt with correctly. I am also attaching the tool path code to aid with the problem finding.... Outline Issue.txt

Expected Outline Path:

Actual Outline Path: