I found a tool that optimizes gcode: https://github.com/alsliahona/gcode-optimizer.
Looks like it was last updated 4 years ago, but I don’t know that it would matter. Seems to work. I put my flag gcode in it and it really did a nice job of optimizing the tool path. I haven’t tried cutting it with the new gcode, but it certainly looks more efficient.
Before optimization:
After optimization:
It still seems to lift the router bit, move over a step, and lower it, but at least it doesn’t move all of the place. I’m still looking for a simple gcode creator that does a better job with pockets than makercam does.