If you want them to dead line up, set the kerf to zero.
But if you want the pieces to fit tightly, then don’t do that. Kerf adjustment intentionally offsets it so you can get a better fit. You’ve been around, so I’m sure I don’t need to explain what kerf compensation is.
For most 1/8" woods, 0.006 is a nice place to start, it’ll work out as a tight glue fit. 0.007 or 0.008 will make it veer into “I need a mallet” kind of friction fits, which can be really cool but are hard to work with, especially with hardwoods that want to break along grain lines. 0.003-0.004 will get into the “easy glue fit” range… and 0 will be “it’s floppy and won’t stay aligned without clamps” territory.