Bitmaps not allowing me to CUT

There are several issues you are looking at, at once. The first is that no raster will be anything but engrave. If a color cannot be made a cut score or engrave then you have a raster no matter how you created it, only vectors can be made to cut.

When you do want to engrave the LPI can make a big difference.

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I figured out how to get my images to do both!