Ransco.
The dog image you are working with is less than an inch! You might want to work with images that are a little bit bigger.
Not to mention the steps you are trying to take are not the right steps.
3D image machining with BobART.
Click BobART Tab
Rt Click on images and load your picture. ( you do this so the software will know the stock size automatic )
Rt Click on Emboss model
Choose Emboss from image.
Edit your setting for how deep or up you want to go.
( most of the time you are only embossing .100 + or - if you try for more than that the image gets distorted)
Then you will regenerate
What this does is create a model that you can then lay 3D tool path down on.
BobART works on gray scale and this image is very light. Gray scale being you set a value lets say .1 from dark to light and the gray scale between is where the software goes up and down from 0 to .1.
Now you can add additional embosses to puff the shape up, that's what I did in blue