Seems to me that you are crediting me for a scene that doesn't work correctly. On my PC, I'm getting many old blocks that aren't dying as expected. Looks like the script can't keep up at 1200 Hz.
The reason it works on your PC may be:
1. You are not using the latest version of Algodoo.
2. The scene that you are running on your PC is not the same as the one in Algobox.
3. Your PC is able to process the scene faster than my PC.
The scene that I just downloaded from Algobox doesn't make sense. In the cutting wheel onCollide event you have:
sim.tick > _tick + 2 && e.other.materialName == "stone" ? {...
yet you are try to cut wood.
The custom code in the wood is the same as in the cutting wheel. There is no need for any custom code in the wood.
Upon checking the scene at 120 Hz, I see it works a expected so I'm thinking #3 above.
I am able to run Milling Cutter at 1200 Hz, so I'm confused why your scene won't run much faster than 120 Hz for me.