Import Image with Image Trace

Hi I am importing a US ARMY logo with Image trace but when I shrink it down, the US ARMY part below the star is not recognized. If I make the image huge it will recognize it but I need the carving to be pretty small. Is it just too small for the machine to cut? Im doing the logo on a 4x4 coaster and wanted it on the right bottom corner. Thank you!

Nevermind I figured it out!

Was bit size the issue?

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yes, bit size issue. I am brand new to this so trying to play around with it and learn as I go. Are some imported pictures just too big to shrink down as much as needed? I am running into that issue regardless of bit size in an image trace. I guess I have to make the photo smaller before importing it right?

Fine detail requires very small bits. 60 or 30 degree V bits can help, try those in your design. They will require Easel Pro to cut but they give 4 free days a month.
The finer the detail the longer the carve time.
You have to find a happy medium to your satisfaction.