It shouldn't be. That's the way 99% of Mach3 users create their g-code.The Gcode is being created by CamBam. It will do arcs in either incremental or absolute, but when the absolute lines are mixed with the incremental arcs, the output is ugly!
Also, note that it's only the center of the arc that is incremental. The start and endpoints of both lines and arcs are absolute.