Tried out V26 and then got the yearly sales call, so if this sounds a bit terse, it is.
There is an ongoing bug in the lathe tool generation back to at least V23. It shows up when trying to use Cutting Arc Center compensation under posting on current settings. The bug is in the tool creation engine in the cam tree. If you create a new tool or modify an existing tool, that tool is now bad. The pointer for the orientation is off by 1. Existing tools in orientations 1 and 5 have their theoretic points for Z and X both negative. Your new tool has a positive Z. If you use only the original tools in a feature, it will generate the correct tool path offset to the outside of your part by the tool nose radius. If you pull in a tool you have created, it will be wrong with the tool path inside your profile in Z. The thing that will drive you nuts is that if you modify anything on the tool in a feature, that part of the software will set the orientation back to the correct Z theoretic offset again in that feature. In versions 23 to 25 you can use this to straighten things out with the tool path. In version 26 the tool creation is still bad, and is carried into the tool crib. But now the toolpath engine seems to create the correct offset in Z for the bad tool, and the wrong offset in Z for the good tool. It seems to ignore the X value altogether.
Told the salesman I would be be happy to explain this to programming. They have my number.
Hopefully Al or Burrman will see this and rattle somebodies cage.