The issue is that the initial thread isn't going down after being cut by the autocut and is being left hanging loose on the top of the design. The thread slipping out was just from a test I did with a spool net on the spool as it was embroidery which was causing too much tension. Other patterns do the same thing even the ones built into the machine. I figured out that it goes away if I raise the presser foot up higher than the default so it is either something with the presser foot being warped/burred or it is just too far down or the thread is just not getting enough pull at the start to suck it down into the machine. Thank you very much for the suggestions so far! I've been getting a lot of ideas and am trying to zero in on it. Not sure what to do if the presser foot being higher up creates more issues