Project Help (Offsetter App questions, cut out)

Good Morning!

I am new to X Carve, and have made some very simple projects (American Flags) successfully. I am trying to do a project for a buddy of mine and the image I am using is fairly more complicated.

I am trying to recreate a piece using a multistage carve. I have tried to generate a outline around the whole piece using the Offsetter app so that I can cut the entire piece out. It is not producing the effect that I am going for, however, and is bubbling everything out even when tinkering with the settings for a few hours.

The image itself I want to use a v-bit to carve into inlays on the cut out outline. The image I want to use and the piece we are trying to recreate are below:

As you can see on the old piece, there is a slight buffer between the outside edge of the image itself carved into black inlays and the cut out wooden shape.

Does anyone have any advice on how to get in the right direction? I would appreciate any tips from someone with some good experience! Thank you!

Is this what you are trying to do? Also is this an insignia for Air force Para Rescue?

You crushed it! But how did you generate the line outside of the image for me to cut out?

And the symbol is for Marine Corps Recon, a Recon Jack.

select your entire image, open the offsetter app. set your desired offset. Click import. Before you do anything (remember what you imported is selected) change it to “clear out pocket” then combine.