Use Point Appliqué Hole to place points to define a line of any shape to create a hole within the selected appliqué area.
Select the desired Appliqué Piece so its points are displayed, then place points to draw a hole. Right-click, and any appliqué fabric is removed from the hole.
Hold down Ctrl to place a corner point when creating or editing a line. Click Delete to remove the last-placed point.
Shortcuts
Create, Appliqué Tab:
Keys: Alt, A, AH, FP