I've decided to start testing this perk because to me it doesn't really seem to work or it maybe it does and I'm just interpreting the way the perk description in another way. So the Deep Cuts perk states:
Level 1: "Blades deal 5% and can inflict up to 3 Bleeding Wounds on enemy, power attack inflicts 2. Every attack refreshes bleeding duration. Bleeding enemies run 10% slower."
Level 2: " "Blades deal 10% and can inflict up to 4 Bleeding Wounds on enemy, power attack inflicts 3."
Level 3: " "Blades deal 15% and can inflict up to 5 Bleeding Wounds on enemy, power attack inflicts 4. Glancing blows have 40% chance to cause 1 Bleeding Wound. Bleeding enemies run 15% slower"
Level 4: " "Blades deal 20% and can inflict up to 6 Bleeding Wounds on enemy, power attack inflicts 4. Glancing blows have 70% chance to cause 1 Bleeding Wound."
Level 5: "Blades deal 25% and can inflict up to 7 Bleeding Wounds on enemy, power attack inflicts 5. All glancing blows cause 1 Bleeding Wound. Bleeding enemies run 20% slower"
Emphasis on Bleeding Wounds. Now I did test out the Deep Cuts perk in a modded version that shows the HP of zombies and buffs/ debuffs that have been applied to them. Each and every time I've done a power attack. Regardless, of perk level it always seems to only apply 1 Stack of bleeding and not the actual amount as described in the perk. So either the perk is not actually applying what I interpret or the perk is indeed working. It's just a limitation of the way it's implemented in-game.