Hi dkmarquez,
Something is causing a contour to be generated from a rectangular feature around the design. If you created a raster-layer from the SVG then there is likely a border that you can remove by changing the canvas Z-Fill to the top of the canvas volume, and then change the layer's blend mode to Minimum. Or, if you created a paths-layer from the SVG, then you can use the path-editing mode to select and delete any rectangle that's surrounding the design. This will also mean that you'll need to toggle (either from on to off, or off to on, depending on what it's already set at) the operation's contour "Invert" option.
If you can show me a screenshot of PixelCNC in the Project Operations mode with the relevant operation selected so I can see both your canvas and your operation parameters I can better guide you :]
- Charlie