V Carved Letters too close together

I laid out some text “Chesapeake Bay” using the Cinzel font in the preview the v carving is carving the letters too closely so that they all sort of blend together. How can I fix that?

Is it because the depth of cut is too deep? Have you tried a shallower cut to see if it changes the layout?

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What software are you using?

Depends on what the reason is.
The V-bit you used, does it have a slight flat spot? Whats the angle/degree of the bit used?

Symptoms like you describe indicate either a flat spot or incorrect (lower) distance between bit and material.
This could also be due to Z losing steps.