Your I a K values are not correct. You are only moving 5 MM but you are telling the control your circle center point is 205 mm away from your start point.
I'd try using the L value instead of I and K and let the control figure out the circle center point (or R if you are on a M/C). Your circle center is not an absolute coordinate, it is incremental from start point.
In your case use L5 in the line to fix it.