To remove all block and empty squares in the puzzle to make an outline puzzle select the Convert to outline/shape item on the Grid menu.
You can also make an outline puzzle directly by setting the option on the Options tab of the Create Vocabulary Puzzle window.
This features gives a puzzle with an outline that goes round every filled square, allowing you to create free-form puzzles. You can toggle a square between being removed and blank by pressing Ctrl+Delete with the cursor on the square. Here is an example of a puzzle before and after converting:
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