Try setting L to a smaller value and try again. The L value is probably too large compared with the mesh.
With the Lagrangian method, elements get deleted as failure occurs and so it will be difficult to see chips being formed and fly away. It is probably best to use the particle method if you want to see chips.
Have a look at dynalook.com and search for metal cutting papers. We don't provide material input parameters. It is your responsibility to get them. You need parameters to model material failure. You can test the material yourself or maybe find something in the literature.
At last, as an Ansys employee, I am not allowed to download your model. You can still post it here so that other users can help you.