Yes it is completely normal to create holograms when using a rotary polisher, infact you `always` create holograms when using a rotary polisher, the only question is whether your eyes can see them or not.
When using more aggressive pads/polishes the hologramming effect will be more noticable then it will with a finer pad/polish. Most ultra fine pads and polishes will create a hologram free looking finish (they are still there since holograms are caused by the repeated pattern of ultra fine marring and you are rubbing abrasives across the paint).
When you are polishing you always want to create a better looking surface (with few exceptions) then the one you started with.
So M105/Orange might leave some moderate holograms, then M205/White should remove these holograms (but may leave some faint holograms of its own). At this point you can try M205 on a finishing pad (which I would have tried first) to see how it looks, but with M205 you may need a DA to remove the holograms completely.
If you are finishing on a rotary polisher I highly recommend finishing with a dedicated fininshing pad, such as a black or red foam, as more aggressive pads may increase the level of marring that it is visible.
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