I have had Coats & Clark Machine Quilting thread shred like that & worse many, many times especially the darker colors. Switching to a bigger needle, especially a topstitch or embroidery needle with it's larger eye helps but I won't buy C&C for quilting any more. I have had a lint ball just kind of fall out of the needle bar because I had been happily sewing or quilting along and didn't notice it lurking up there waiting to drop. I even had one get sucked into the tension disks and had to take the machine in for service to get it out. That's when I decided no more C&C quilting thread.