The Round Corners function, if set to Yes, will round sharp corners with a radius of 0.01. This option will insert a fillet in all corners, so if you have an inside cut you will most likely cause an error when the tool tries to fit into that radius or the corner will be cut larger than the intended radius. If you have inside and outside cuts on the same shape and need to fillet the corners, use the AutoCAD Fillet command, then Geoshape and Cut the shape.
This will set the option to NO, and no rounded corners will result.
This will set the option to YES, and rounded corners will result.