Guitar; Hey, welcome!
No, but there is a an issue. If you draw a 2" square, find the exact center, and scribe a 2" circle inside the square, the circumference will be perfectly mated to the perimeter. Visually, each of the four sides will flow smoothly into the arc.
That doesn't happen if your circle is larger than the square. When you slide the arc back so that it's within the square, the arc creates an edge, or angle if you like, where it intersects with only two of the adjacent sides where it's still tangent.
Try the 3/4 bit on a piece of 5/8" scrap; nothing bad will happen. Obviously, the same thing doesn't happen when you use a smaller radius bit.
This discussion has happened here in the past; a lot of us use small radius bits (1/8" R.) for rounding over on a regular basis.
If you're worried about the appearance, maybe buy some/a smaller rad. bit?