The moral to the story. CNC is not meant to use an 1/8th inch cutter to make an 1/8th inch hole. Cutters are meant to make chips. The general rule is the cutter should be no larger than 2/3 the size of the hole you are making. The cutter has to make an oscillating path, that is impossible if the cuter and the hole are the same diameter. It will and does end badly. This is because we are using End mills, cutters , bits. Drills are not mills and Mills are not Drills. Mills are designed for lateral loads, drills do vertical loads. The optional way to do this is use a 3D cad/cam capable of drilling operations to do peck drilling. This will require a proper tool change, if you use the wrong tool at the wrong time you will likely brake one or many tools.
I hope this information is helpful.