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Hi @jblack,
Thanks for supplying INI and XML files which make me able to reproduce the above behavior.
I verified this issue with your INI and XML files and found that DMK 3D Toolpaths was unchecked in secret menu. If I check it, recompute the stock model, simulate again, it is clipping the toolpath correctly according to the stock model.
Refer a video DMK settings in secret menu affecting surface milling toolpaths.
Note: I verified it with creating a solid model of stock and using it in a Z level > Stock > Use solid model. The same option is affecting it too. If I check DMK 3d toolpaths, created a solid model again and used it in a stock tab, clips the toolpath correctly.
Hope this helps.
Please click on Accept as solution button if my post answers your query.
Thank You.

Abhishek