It's the plastic heating up and melting while the bit is going through. Might sound stupid but chill the bit and the box before drilling and that should help, also try to go through faster, but stay safe. You don't want a drill bit in your hand or thigh.

And yes that bit is going to be subpar for the work you're trying to do. Harbor freight has cheap bits that'll do what you want https://www.harborfreight.com/power-tools/drill-driver-bits/high-speed-steel-drill-bit-set-13-piece-61723.html

These ones won't be good for much, but the light plastic, they'll be great.

I’d try slowing down the drill if you haven’t already.

I'll try these bits tomorrow, thank you

Actually, you want the opposite. Speed it up and get through it quicker. It’s ok if there’s more friction so long as it punches through faster.

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If you're using the bit shown in the photo, then you're using a screwdriver bit to try and drill a hole, which is not going to work. Try a drill bit, instead of a screwdriver bit.

To get a clean hole I would try using a piece of wood as backing while drilling.

yea it did look odd to me.
i asked the a guy working at ace hardware for a drill bit to drill clean holes through plastic and he pointed me to that.

You can probably trim those off using a small pair of nail trimmers. As for drilling new holes, I like Tolenkanor's suggestion.

as in place wood under the plastic and drill through the plastic into the wood?
if so, what are they called? i am trying to google drilling boards, woods etc and nothing showing up. or is it just any cheap piece of wood would suffice?

they are thick and not easy to trim, while i can fix a couple holes but i am planning to drill many. and not going to look pretty.

Use whatever you've got that will fit with the box, any scrap. I'd give it a try, and if that bit doesn't work out I'd consider picking up a new set of drill bits at the big smock store, with sales ramping up right now.

Ok will try, Thank you

You can drill from the other side and have the burr on the inside, I own a deburring tool for plastic work like this https://www.amazon.com/AFA-Tooling-Deburring-Printed-Printing/dp/B0B7611J5Y it works like this https://www.youtube.com/watch?v=H1k9vxEwHCc I love them they are useful on lots of stuff.

Awesome! I finally learned what the hell the extra scrap from various material is called. Burr!! Loool I'll definetely get a deburring tool to keep in the house. Thanks

We've had better luck heating wire over flame and poking holes with the hot wire.

That's not a drill bit, it's Phillips Head screwdriver bit. You have actually melted a fole through the plastic, not drilled.

Get a proper drill bit, and you won't have that problem.

That's a v-bit end mill

Impression from first picture: You need to use a sharper drill bit.
Impression from second picture: You need to use a drill bit.

Worked perfectly! Thanks :)

Go buy a bit used for glass , they look like an arrow start by making a small hole then go up the next size do that until you get to the appropriate diameter and spray the hole with water with just a drop of dish soap as you go for a nice clean hole

Yaay! Congrats. I'm so glad it helped!

Try this. Drill a hole with a bit that is several sizes smaller than the final size. This will be your pilot hole.

Using final size bit, slowly drill from "back" side (side that isn't seen as much) to a depth of half the thickness of the wall.

Then drill from the front side and finish the hole. Presumably, there will be less material being pushed out compared to fully drilling from only one side.