The arcpy Polygon.cut(cutter) function fails to properly split donut geometries if the vertices of the cutter geometry and the donut vertices have minor offsets.

Workaround

• Shift the cutter line a bit in x direction so that the difference between x values is greater than the XY tolerance.
• Copy the geometries to a new feature class that has a lower XY tolerance value.
• Use Feature To Polygon with the line and polygon as inputs then use Clip on the resulting layer with the original polygon as the clipping feature.

Steps to Reproduce