You are very welcome.
The bit Offset of 0.07" is slightly more than the radius of the 0.125" BN carving Bit. If that Offset wasn't specified, the center of the bit would stop at the vector boundary, thus not fully carving the edges of the model. It's common practice to specify a tad more than the bit radius for "insurance".
Many of the tutorial videos mention this, albeit sometimes not emphasized except in a few of them. Since you are new to the software, watching the tutorials will be helpful I'm sure. Try to watch at least two a day (or more, if you have time and don't get brain freeze too easily!).
-ShopBot Buddy PRSAlpha CNC