You can see in the photo after sanding, there are consistant cutter marks about 80% the cutter diameter. You say that it is a 1/4" cutter so the cutter marks are about .2" apart. This is the pitch of most ball screws and could indicate a need to tighten the gibs in the x axis. If there is any runout in the leadscrew, and the gibs are too loose, the leadscrew can be lifting the table once each revolution.
An explanation as to why it is worse with this cutter could be that smaller cutters will plunge easier and contrary to the previous post, carbide E/Ms are sharper than HSS (because they are harder and sharpened with a diamond grinder so have a better surface finish).
"Perfection is achieved, not when there is nothing more to add, but when there is nothing left to take away." Antoine de Saint-Exupery (1900 - 1944)