1.1.1 Retraction problem?

[Simplify3D]

This looks like the same issue that was mentioned previously. Creator is producing the correct G2/G3 commands, but the Marlin firmware cannot handle them appropriately without excessive pausing (which creates the blobs you're seeing). G2/G3 replacement was disabled in previous version, but it was autochecked in v1.1.1 after we overhauled some of the arc detection methods. Because of the issues with the Marlin firmware, it's going back to disabled be default in v1.1.2.