I've never used a ball-nosed cutter in this PVC foam board I cut for fireworks manufacturers. I don't know how it will behave.
We've had a problem, in that the 1/8" fuse we've been buying is no-longer available. We've had to 'go back in time', and use 1/4" time fuse. Of course, the fuse grooves are deeper, and they weaken the 3/4" stock we've used, too much. One customer had a 'plate' completely blow out the bottom.
So, I'm going with thicker material (1"), and will be using a ball-nosed cutter for the groove, in order to lessen the stress points. And, BOY, is that 1" stuff more-expensive than the 3/4"... almost double!!!
I guess we'll see, huh?
Lloyd