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When I use the shape builder tool to cut two objects it shows me this dotted line. Since I don't like pathfinder panel too much I prefer this method but this line is decreasing the quality of the design.
This may be just a screen display issue due to anti-aliasing.
Does it go away if you turn off anti-aliasing in the application preferences?
Can you perhaps share the Illustrator file (.ai)?
you're It was anti-aliasing. thx