SVG files are container files, and they can contain either rasterized (pixel based) or vector content.
Vector content can be either engraved or cut/scored. But pixel based content can only be engraved. (There are no vector cut lines for the laser to follow.)
If you want to create cut lines for the laser to follow, you can use an Auto-Trace program to vectorize the content in Inkscape.
Got a short tutorial here that explains it: