Simplify Curve not able to remove anchor points on straight lines
Ik think the algorithm needs a rework, since it is not able not detect all anchor points on straight lines.
See screenschots.
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Jan Vork
shared this idea
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In this particular case you might want to try Convert to Straight Lines option it Simplify Dialog.
Also please try using Pathfinder’s Add operation with Remove Redundant Points option on (in panel’s options via panel’s menu).
And also please provide the file for testing (I understand you probably did not stored it, but I can’t reproduce it).