If you are running a #302 and your letters are 1" in height, your sample cut points to the Z not being properly zeroed.
Note: When I zero my V bits I take a small piece of paper or backing to Velcro/ double sided tape and lower my Z until its just barely over, then adjust to .01 and lower until bit just grabs paper and allows to spin, no further as your cuts will end up gouged when it would otherwise come out looking rather clean.
I will switch to phone and add image of test cut
I am running a file now, scooped up your image and converted. While my conversion was not perfect, here are the results.