[usajet]

I think this might be your problem

N50 G1 Z2. F3177

Try setting F = 300

I'm surprised your machine is not walking across the floor at 3177

From the post format, it looks to me like you are using Fusion 360.

Choose 2D pocket as your roughing operation, and 2D contour as the finish operation.

Make my life easy here and tell me what size hole you are cutting?

I lowered the feedrate and I tried 300 down to 160 and that didn't fix my issue. It got a little better but not 100%. I did adjust the knee gib but haven't tried it. Plus I do have servos now and will be removing the stepper motors.