The tool location UCS for a turning tool block should be located at the back of the holder at the bottom of the tool block as shown:
The tool holder is positioned with the back of the tool along the Z axis of the tool location UCS and extends below the tool block by the distance specified as Exposed length on the Holder tab of the Turning tool properties dialog. Additionally, the tool tip is located the distance specified as Tip to back (F) on the Holder tab in the local X direction of the tool location UCS (the turning stock Z direction).
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Exposed length
Tip to back (F)