So I have successfully made a test wood inlay. Ambrosia maple in walnut. The cutting was great for the female (walnut). But now that I have glued and sanded I can see roughy edges from the maple inlay. I think this is because of the following: I may have the feed/jog settings a little fast still Also, when the maple was but the paths did it in one pass. i.e. the walnut did it in two passes for the depth which was just how vcarve did it. but the maple just did one depth. can I get advice or confirmation from anyone having the same issues and also any solutions?
Is there any chance that the tear out was from the sanding? I do not know which direction you sanded, but the tear-out only seems to be -- mostly -- in one direction (sides of letters and ends of long straight parts). It looks like it was all end grain so it may have been easier to tear away the material while sanding (or cutting).
Did you put tabs on the inlays when creating toolpaths? Maybe you set the cutting depth too deep and some of the tabs broke as the machine did the last cutting path? Maybe the bit isn't sharp?