Home, zero, load, run then z hops to new zero

I recently purchased a slightly used x-35 Woodman. I have used successfully used it to cut a few simple projects. I am using Fusion360 for designing and simulated projects appear correct. On my latest project, I start the machine, home it, then zero it on the work piece. Once I load and run the program, the machine moves to the right x/y, but the z goes positive and then appears to set a new zero ca2.5” above the work surface.

Attached are a few photos and the Gcode for reference.

Homed and zeroed

New min z after run attempt.

Visual of the gcode (each tool is a separate file)

Gcode - tool 1

Video link at the start of run:

Any suggestions about what I am doing wrong?