The radius in the corner is the minimum radius that you should have on the lathe tool that cuts into that corner. A bigger radius is MUCH stronger (stress concentration factor), so if you use a "sharp" pointed tool, the part of the flywheel can crack and break, but if you use something larger than specified, you never will have a breakage.
Without all the dimensions, I cannot deduce the stress concentration factor, but a "pointed" tool (the convergence of 2 ground flats) will have an SCF of maybe 10 to 100, but at 0.030" this is SCF reduced to 5.... at 0.060" this reduces further to 2.5 (Twice as strong). It is an Hyperbolic function - not linear - so don't try and "simply" extrapolate these things. Refer to a proper text book of stress concentration for a proper answer. Fatigue strength is also a non-linear function but someone may have defined such a min radius to increase the fatigue life by a factor of 2, or 5, or 10, or more?....?
Usually, these dimensions are specified only where someone has experienced real cracks and breakage! (The highest stressed zone always fails first).
Personally, I have always used larger radius tools (1mm or more) wherever possible, as I was taught as a lad, and having tuned various things to breakage (and failure is always at the highest stressed point), often at a machined "sharp" corner.
One example, when (professionally) designing components that were stressed "close to the limit" I experienced a part that had a radiius of 1mm (0.040") in the corner, but failed on durability test at only a couple of thousand operations (not good enough) and the solution was a min 3mm radius - when it never failed. (Stress concentration is THAT important, e.g. on stub axles of car front wheels, where on "correct" parts you'll find large radii used where needed, but can get "aftemarket parts" with sharp corners (!!!) that will fail prematurely.... - and while the material choice and control, and control of heat-treatment, are also critical, the stress raiser will still "break the best and all the rest"!
EVERY feature put on the drawing by the designer is there for a reason, so please keep asking and learning what they all do. Knowledge is a "gift of humanity" to be shared, not ignored, or denigrated (as seems to be the fashion amongst modern youth!). (There I go again, using words I can't spell, and as the spell checker didn't correct it I had to check my 1950s dictionary! Written by scholars, for all who can read to use..., and "the batteries have not run flat" on that paper book!).
Those that don't know/don't care will ignore stress concentration features at their peril, (Or someone else's peril? - !!!).
Enjoy modelling, it is usually safer in the workshop than "out there in the great wide world"!
K2