Error causes
The coordinate of an STL file is wrong.
How to fix the issue:
Solution 1 (Recommended): Please align the hole coordinates according to the Z-axis in your CAD software when designing and exporting the STL.
Solution 2: Select "Do not treat CAD files" and proceed by manually defining a hole.
Defining hole:
***If the coordinates of an STL are correct, the margin line and hole are detected automatically like in the image below: