Thanks for the reply.
1 - Tried removing frames, same result.
2 - Tried with different sequence, same result.
3 - It is in windowed mode.
4 - OK.

Did some tests with the code below, which allows me to turn PiP on and off and check behavior.
Code:
//----------------------------------------------------------------// TOGGLE PIP WINDOW (TURN HOLE ON AND OFF)
//----------------------------------------------------------------
<Hotkey ScrollLockOn Ctrl P>
   <Toggle>
      <TargetWin WoW1>
      <SetWinRegion none>
      <TargetWin WoW2>
      <SetWinRegion none>
   <Toggle>
      <If WinSizeIs WoW1 1000 600>
          <TargetWin WoW1>
          <SetWinRegion 300 300 200 100>
      <Else>
         <TargetWin WoW2>
         <SetWinRegion 300 300 200 100>

// SET PIP CONFIGURATION
// Usage: <SetPip BigWindowName LittleWindowName>
// This command is called by <Hotkey F1> which is defined below.
//-------------
<Command SetPip>
   <TargetWin %2%>
      <SetWinSize 200 100>
      <SetWinPos 300 300>
   <TargetWin %1%>
      <SetWinPos 50 50>
      <SetWinSize 1000 600>
   <TargetWin %2%>
      <SetForegroundWin>
      <UpdateWin>
   <TargetWin %1%>
      <SetForegroundWin>
Results with PiP on and off on the screenshots. You can notice that when PiP is on, not only the hole show up (as expected) but also a strip from right side and bottom of screen is removed as well. Maybe some incompatibility with my drive or Win10?

Name:  7o1LBcY.jpg
Views: 1703
Size:  187.1 KB

Name:  VQxiMPU.jpg
Views: 1673
Size:  207.8 KB