BQtools bits are high quality and a good bit cheaper
May I say that to make it easy bits come in up cut , down cut and compression
First off YOU WANT SHARP bits. Most woods will give a bit of fiber so let me tell you what I use and why.
As a machinst I use many different bits and in the end here is what you need to know
Up cut is my go to for inlay work by hand
I use 1.32 2 flute bits mostly but on small things BQtool has a .020
I like up cut on blind holes so the chips come out the top
Always be away of heat , you cut and feed rate should be so the heat is more in the chip
than in the tool or the work. Again SHARP
Down cut
I use these on plywood not a big fan on inlay as the chip if pushed to the bottom of the hole
creates more heat Ok if you have a cleared hole.
Down sides is when they get dull on some woods the fiber or grain hair gets pushed down this can
give you a false read on fit. they also cost more. Again I use them more on the CNC than inlay.
Compression bit
this is mostly used on CNC and is a combination up and down cut. When you get them you must look at where the work line is as that determines the depth of cut.
Burrs
These are used on very hard material as a dressing not a cut. Mostly to deburr metal great for dentists not for inlay
NOTE
Feed Direction is critical
On hand inlay I hit my points and aways use a climb cut that way if the tool runs it will pull into your scrap area not outside . I have been inlaying since 2005 . I have tried them all this is what I did find that worked for me
I use an air tool many of you may be using a dremel they are slower and less power and this also can come into play.
Heat is the sharpness killer and be sure you clear chips as you work. I have use a tiny piece of tape on the bit to act as a fan. Aquarium pumps are great as they blow just enough air to clear the chip without blowing it all over the place.
BQtool site
https://www.bqtool.com/aboutus.htm
just ask for the same bits I use John knows his stuff and they are great to deal with
Again tools you use between high speed air die grinders 56000 to 70000 are easier to use then dremels 35000
One last thing I like to set the pearl a touch above even and if needed use dust to lift it. Just enough to catch your fingernail. Before inlay use 320 grit on a had block to defur the cut. On ebony you can get away with anything its forgiving to learn to inlay. The ligher the wood the harder it is to hide the inlay edge so take your time and lots of small cuts.
https://www.youtube.com/watch?v=AsZuwAXcfUU