There might be a tiny burr in your needle eye. Is it a new needle? Did you try changing needles? I'm with
@Onebyone I get the same damage if a needle stays in the same place in the thread.
I've been working on GFG EPP off & on since 2018, I only use gutterman or mettler. I use about 30" of thread at a time. I do all right if the needle keeps moving along the thread as I piece.
She will be queen size, I have 2 columns of flowers of 7 or 8 columns attached. Total 52 or something 3 ring flowers.
I was gifted an EPP project that the quilter wanted to try and didn't like. Her set up came with a Superior thread, so fine or bottom line. "best most invisible for hand piecing." Sounded great & I tried it. I found it very ravelly, and went back to my tried and trues. Not saying anyone else, just saying me.