The general consensus is that you have to use the engrave setting to cut your paper if you don’t want crispy corners. Also, all paper scorches at different settings, so there is a fair amount of experimenting for each type of paper you are going to use. From what I have read here a drag cutter is going to be faster than a glowforge engraving all of your cuts, but the glowforge can do things a drag cutter cannot. There are certainly some impressive pieces of work posted to the forum of projects using paper.
In this post newbies_234 offers some advice on paper cutting:
Here he made a snake, although there was some charring in areas:
Forum member joker makes playing cards:
More discussion on issues with paper and solutions:
I think the final takeaway is it can be done, but it is far from magic.