Hey Don,
you may be interested in reading → this.
You closed the contact by using the machine chassis, but the correct way to do this is to correctly ground the machine. A spindle is neither a hand tool like the Makita hand trim router nor a machine, but a component to be intended to be part of a machine. The same applies to a VFD. If you marry a spindle to a Onefinity machine, you are the machine builder and have to comply to the safety standards. This is in the first place IEC 60204-1. You have to ground the machine by grounding all its moving parts individually and lead the ground wires to one point, where they are connected with the VFD’s and the CNC Controller’s ground.
And yes, usually you don’t need the magnet end of the touch plate anymore then.