I don't have time to stitch it out right now but I did open it in my embroidery program and took a look. Is there anyway you can change the letters to a san serif font - some kind of block font? Small lettering stitches better when it is simple.
It doesn't look bad to me. It should sew out good. Densities are correct, good underlay, and good pathing. I would check your tension on your bobbins first. Follow your thread path and look for something out of order. Replace your needle, they are cheap.
I ran the design on a piece of jersey knit t-shirt material, one piece of cutaway and a piece of solvy. Ran it at 1000 SPM and not a problem at all. The only thing I notice is that your running stitches in the underlays are way too short. That could cause some issues on pique knits and on anything else it is really unnecessary. When I opened the file most of the underlay comes in as a manually digitized object rather than as a run stitch object so I can't easily make the adjustments for you but in whatever software created it you might be able to easily change this. There's not much need for the underlay and travel stiches to be any shorter than 1mm except maybe in the turns of the lettering and in those cases our software will automatically adjust.
The lettering is not at all small and the serifs are not seperated so I don't see any need to change that. In my shop we would use a lttle more shortening in the turns but there's nothing glaringly wrong with this lettering. Are you experiencing problems in specific places every time?
For me anyway, it ran fine. If I had only a few to run I wouldn't change anything. If I had to run it all day I'd do a quick edit of the running stitches and let it fly.
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