I have the Elek laser engraver and it is set up on Laserweb 3 like you have it set up. Mine though when cutting out a design does a series of dots on the outline of the letters to make up the image instead of a continuous line.
I wonder if the image is causing this or a setting that I may have not gotten quite right.
I’m also not able to use the outline as the cutting laser needs to be on for the trace outline function to be used.
If your able to offer any assistance it would be greatly appreciciated.