OK, I fixed it. I still don't understand how or why this happened. It's never happened to me in 6 years... There was a ton of other stuff in the job that I set up exactly the same way and it didn't do it.
I fixed it by using expand appearance, then release compound path, then deleting one by one, the extra path.
Can anyone tell me what went on here?
EDIT TO ADD:
Weird. The cutcontour by itself is seen by versaworks. If I 'group' it and bring it back into the file with the printed colors, versaworks no longer sees the contour. If I don't group it and bring it back to the file with the colors, versaworks sees the contour. How would grouping it make it 'unseeable' by versaworks????