Hi Amit,
The LED is displaying the true state of the Interpreter.
If the Tool Setup Options:
Tool Length/Offset Immediately and
M6 on Tool Table Changes
are selected, then when KMotionCNC starts up the Tool Compensation is enabled and set to match the selected tool displayed on the screen:
If those options are not selected then the
Settings File parameter
slot_for_length_offset
can be used to initialize which Tool is in use or -1 for not applied.
If no setting is included the Interpreter length offset is initialized to -1 for none.
Disable the Options and set the Settings file parameter
slot_for_length_offset to -1 to initialize the Interpreter with no Length Compensation in effect.