When
_FitCrv _Pause _DeleteInput=No _Degree=3 _AngleTolerance=1 0.001
is run on FitCrv_DistTolVsAngleTol.3dm (39.1 KB),
the result deviates from the input up through 0.028.
It seems that the Fitting tolerance is ignored for the sake of removing kinks. I think both tolerances should be honored.
This occurs in 7.30 and 8.0.23185.16305, 2023-07-04.