Is it possible to cut a 16" circle out of wood using the pass thru?
Yes. You’re pushing some limits, definitely align it to about 0.1" from the left edge of the cutting area.
The camera has a hard time locking in on the right side of things – part of the head geometry – so it’s best to align it on the left side.
Passthrough as usual. Should only take 2 stages. You larger challenge will be finding materials large enough for is, it’s surprising how big a 16" circle is.
It will be far more accurate if you place additional detail other than the circle (i.e. if you want to preserve the inside, then put some detail outside the cut line, something like this:)
(red dashed line indicating where the first and second steps would be separated)