The phrase "precise cutouts" means that the specific and accurate holes or openings have been made in an object to fit or accommodate something else. Full definition
The design gives complete coverage along with precise cutouts for easier access. (indabaa.com)
Available in black, this case will match the look of the Pixel 2 XL and features precise cutouts around the fingerprint scanner and camera on the back. (androidcentral.com)
You'll also get lifted bezels around the camera and screen to protect those important pieces of glass, along with precise cutouts for the charging port and fingerprint scanner. (androidcentral.com)