So I just ran a test for you on some wool felt I got a few days ago.
Here ya go
I picked these numbers as a WAG (wildassguess) and they worked pretty well.
Cut @ 500 speed / 50 power* (*A small amount of fiber didn’t cut the way through, but the edges look good.)
Engrave @ 980 speed / 40 power vary power 225 lpi
height .023
Here’s the wool I used. It’s pretty thin and would need to double up on it or preferably find a much thicker felt. Oh, it stinks to high heaven too!
(@sailbyc I moved your question to the “Beyond the Manual” section since we’re talking settings. Hope that’s OK w/you.)
https://www.amazon.com/gp/product/B01HQTHT5G/ref=oh_aui_detailpage_o03_s00?ie=UTF8&psc=1