First problem is BOTH the lettering AND the Oval have to be on the SAME layer. If you will do that, the oval will be cut and leave the lettering uncut.
You have indicated the lettering is polylines; SheetCam does NOT recognize polylines. However my acad nor sheetcam indicates they are? I moved BEMIS to the layer Oval and it appears to be what you want (I think).
When you have several processes that involve common borders, you may need to make copies of these eneties on various layers. My personal preference when laying out the cad work is to name my layers by PROCESS (not enity). Then if necessary do the copy(s) to each process.
Clear as mud?? If so let me know and we will try again.