Problem:
Needle was coming unthreaded at the beginning of every letter. (Oddly,
designs stitched perfectly, larger fonts stitched perfectly, only the
smaller fonts would come unthreaded at the beginning of each letter)

Solution:
Go to Settings > Machine Parameter Setting > After trimming inching
speed needs to be set at 5 (mine was set at 3).

Go to Settings > Machine Parameter Setting > Inching Stitch needs to
be set at 5 (mine was set at 3)


Changing both of these settings solved my problem!