If the cut out were to be placed where you state in the picture than it wouldnt be a cutout. Its called a cutout because it cuts out the normal flow of exhaust and reroutes it. It relieves almost all the back pressure from the cats/muffler(s) depending on where you place it. When placed right after the headers pointed down or to the side it is basically like running open headers. I'm just a noob but i hope that helps you.
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1994 Z28 M6
Cat Back
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