O wow are you wrong and the "Hot Head" correct!
The whole point of programming a profile using cutter radius compensation is so that you can set the exact radius of the tool at the machine.
This way, if your cutter is reground, you can still use it with the program without having to reprogram the job.
When you program, you should be outputting true geometry, i.e. sizes that you can find on a drawing, not a compensated profile.
If you program an offset profile, your operators will be having a hard time translating where the tool is supposed to go to when looking at the drawing.
Good luck dealing with the "Hot Head" but this time around he is correct in what he did and said.