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I think you can do that by designing your MPC on the back side of the board and place the cutout on the front.

You can do that, right click on the edge of the board and "Select All", you can then resize your MPC or resize your board - your patterns need to be unlocked from the board.

It's true you do not need to change bits, but the controller will set the bit height to all the same setting when your pattern loads into the controller. We did that back in 2007, but if the bit is...

That is not a useless function; it looks like it is used to set up the binary codes in the CW machine's controller. It is like installing a program in your computer.