These are woven labels. They are not printed at all. Different color threads are woven together to make patterns like this patch.
Very inefficient to weave one patch at a time. They are woven on large looms many feet wide. Multiple patches are printed at once (ganged) and then cut, just like they do vinyl labels.Yes, it looks like it's woven to me too, but it's a bit strange to me when it's woven why they cut this shape with a laser.
Is the weaving machine not making the desired shape?