Use Point Appliqué Hole 
to place points to define a line of any shape to create a hole within the selected appliqué area.
To create a hole in an appliqué area with Point Appliqué Hole
-
In the Appliqué window, select an appliqué piece, click Point Appliqué Hole
, then place points to draw a line to form the hole.
Create a hole in an appliqué area with Point Appliqué Hole
-
Select an embroidery with appliqué.
-
Open the Appliqué window
of the Control Panel 
. -
Click Select Piece
, and then select the desired appliqué piece so its points are displayed. -
Click Point Appliqué Hole
. -
Place points to draw the outline of the desired hole.
-
Control–click and choose Finish placing appliqué hole to remove the fabric from the hole.
-
Click Point Appliqué Hole again to create further holes.
Note: Hold down Command to place a corner point when creating or adjusting a line defining a hole.