NX Turning Tool with a Round Insert will not Cut an Undercut

An ID Turning Tool is created with a Round Insert. When the path is generated an undercut region is left uncut. The tool and the operation look correct. What could be causing this?

Edit the Turning Tool and note that the Holder Control Width is set to 0. Changing this to some value will cause this holder to be displayed.

When the holder is displayed it can be seen that it will interfere with the undercut cut region. This is the case even though the holder is set to zero width and not displayed.

Changing the Orient Angle rotates the tool holder away from the cut region.

With the holder out of the way the tool now cuts the entire part.