Yes it is most likely caused by the lathe and it is missing a normally closed contact in the E-stop circuit that opens when the lathe goes into the e-stop or non ready condition. This is sometimes also caused by not having the "system link" button on with the barfeeder interface.

in some cases this is jumpered out on the Barfeeder since an alarm signal would be generated on the lathe which would stop the barfeeder anyways.

Best regards,