Does your setup WCS Coordinate system match Pocket NC's default homing origin?
The coordinate system you show is fine for the tool path itself but I don't see the SETUP WCS origin.
When Pocket NC Homes it is at X+2.500 and Y +2.500. So if the But the Rotary Centerlines are .885 up in Y
So take Y+2.500 and subtact the .885 Value and the max clearance you can have is Y+1.615 above the WCS.
I may be off on a tangent... Since Pocket NC is shipped out of the box with no current Fixture offset support in 5 Axis mode you must use the origin of the machine when it is homed. Next you must set your part up with literal values. This is a bit backwards compared to modern 5 Axis CNC's using TCP or Fixture Compensation but it does works.
The three images below explain the SETUP WCS to Tool Path CYS correlation on Pocket NC.
1) In the first photo you see the Pocket NC at it's home postion. In the example the PNC vise is oriented from Center to the Right. That is along the X Axis on the right side of the rotarty centerline. (Notice the Z Axis Blue Arrow shows the positive direction that the Z Axis moves in when the machine is homed.)
2) The second photo shows the Fusion 360 CAM SETUP Screen. Notice the Z Axis matches the actual Pocket NC's Z Axis when it is homed.
3) The Third photo shows an engraving tool path. But notice it's Z Axis is now pointing upward. (See the Blue Z Axis Arrow.) It is the direction the tool needs to approach the part and cut it.
But also notice that within the dialog box for the Engraving tool path the origin is specified as WCS. That is making a hard reference to the Z Axis that is used in the SETUP. Now the post can tell that starting out Z needs to be output with respect to the WCS and the Pocket NC Post is setup so that is A0 B0. Next when the tool path is processed the post sees that the engraving Tool Z Axis orieintation is now in a different direction. And it outputs A90 B0 so the tool path will move the PNC Rotary Tables correctly. All the clearance planes etc need to be hard set with respect to the math of the PNC.
Message me if you need futher explanation.
Randy Kopf