Your image should engrave just fine. Maybe boost the contrast a little more. What type of wood are you using? I find that light woods, such as the Basswood, or Maple work the best with consistent results. Since we’re already in BTM, I also like using whiteboard from Home Depot: Baby Photo Engrave - HD Whiteboard
I should also point out that I use SD engrave, with the LPI boosted to 340. I’ve never been fond of the Glowforge photo settings.