Yep, as Dave said – sharing the stepper driver power bus with your other electronics, arduino, etc, is really not recommended.
Andy, I suspect your stepper supply also powers the Arduino? ( via regulators, etc..) That also makes the opto-isolation in the stepper driver somewhat useless…
It is NOT recommended to use a common supply for stepper and processor – Voltage spikes become common and destructive – small steppers are probably ok, but still..
John, you correctly mention the holding current, etc – note I did say that the stepper is easily turned by handwheel with the driver power OFF..
Terry, a simple test – fit a handwheel of sorts to the stepper shaft, connect the stepper to your stepper driver, without power, and turn the handwheel. If it turns freely enough, ignore the lack of a problem, and get on with it..
Joe