What kind of 7th axis? Turntable carrying the workpiece? Linear rail carrying the robot?
KRC2ed05? So, I assume it's using KSS 5.something. Correct?
Have you completed the hardware integration of the 77th axis?
The spindle is almost irrelevant. It has no effect on the 7th axis integration. You will need to set up TCPs for each cutting tool the spindle uses.
I can't speak to PowerMill, having never used it. But for any OLP-generation software, ensuring that the virtual model matches the real-world robot in all respected (axes, Base frames, Tool frames, etc) is absolutely critical.
Start with the Axis Configurator tool.