Position BF Bore Pattern with MIC

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Hello all,

I'm trying to understand how Calypso is calculating bore patterns with the original position command. Example...

I have a circular bore pattern that allows for rotation. I dimension my bores as MIC. I select the elements in the Bore Pattern, check rotation, select View Tolerance to get a functional fit and apply MMC to the holes.  Calypso forces me to either create additional diameter characteristics or adapt the existing bores to LSQ. 

I understand that LSQ is going to give me a more reliable fit for machine process control. But what if I want a functional fit? View Tolerance is supposed to do that, so why is it wanting LSQ bores when that's not what a functional fit would be? Is it doing its own functional fit calculation with the created LSQ bores and View Tolerance? Do I just hide the LSQ bore diameters it's using, as I need to report the MIC size of the bores?

I appreciate any insight you can provide on what is the proper way to use the bore pattern characteristic for functional fits.