I don't have a newer version of Illustrator but the version I do have is AWFUL at vector tracing. It may look decent, but it stacks colors on top of colors on top of colors. It's absolutely the worst way to deal with artwork when you are working with paths.
Take your file, bring it into Inkscape. Trace it there. Then export into Laserworks. I have a distinct feeling you'll have a lot more success. Gravostyle works a lot like Laserworks and Inkscape is my go to way to vector trace. It simply works better.
Equipment: IS400, IS6000, VLS 6.60, LS100, HP4550, Ricoh GX e3300n, Hotronix STX20
Software: Adobe Suite & Gravostyle 5
Business: Trophy, Awards and Engraving