I have not read all the posts , but as someone who has been doing machine emb. fgr 17 yrs. I would make them take out the stitches...it can take a long time to do it. Ask to see it after the stitching is taken out to determine if there has been any damage to your quilt. Be sure to press before they stitch it again. You may want to choose applique letters instead. If not they can enlarge it slightly to cover up any needle marks. As someone else said it doesn't look like they use a stabilizer or possibly no underlay stitching. I hope you get satisfaction. fmd36 in NH