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When you cut a rectangle, the normally sharp corners get rounded over, leaving it looking rough and jagged. The solution to this is to apply a texture (I usually use the texture 'gold') to the object in question. In some odd bug, the corners now snap back to being sharp, non-jagged, and non-rounded, as they should be.

Is this common knowledge, is is it just me?

I knew that it worked better from a distance rather than up close csg cutting but thanx you really helped me.
That bug destroyd scenes that I worked on

Yeh, I've actually noticed the more complex a polygon is, the lower the quality of cut is.

I also figured out using a texture fixes this, but good on you for posting it. It's best to keep polygons simple. If you want something with good detail when your close to it, use more pieces. If you are just looking at it from a distance, it doesn't matter because it can't be noticed.

I was always curious why one clean straight cut cannot create just one additional polygon side, but makes whole thing rounded.