I already reported this issue, but if somebody could confirm.
When creating an arc from 3 points of an existing circle, the result is a straight line. All is fine as long as the 3rd point is near a point from the circle, but once it's on the point, the arc becomes a straight line.
This happens with any circle object (LW2020.03/LWCAD 2023.00).

I reported something similar after I purchased since I never had the issue with the older version I was running at my work's office at the time. I'm having the arc not show up at all or the arc curves in the opposite direction.

From messing around a little and granted this is just guesswork, the issue for me seems to be about size. If I'm trying to make an arc in a small area it flips out and doesn't want to work for me. A work around I did for something I'm working on was to increase the size so the arc tool works properly then re-size it back down to the proper size I need. It's an extra step that I shouldn't have to take but that's worked so far as of posting this.

Hoping this gets properly fixed.