Pattiann is right on! I would do some more things.
You do not mention doing a 'discovery' sew. That is when you use the same or similar fabric and test the pattern. That will help a lot in determining your specific issue.
I would do your discovery with a lighter stabilizer because having canvas, which can be very heavy, and a heavy stabilizer could be causing some of the issue. Stabilizers are a balancing act. Sometimes they need to be adjusted. Canvas needs a lighter stabilizer, IMHO.
Additionally, you may want to try doing a 'Tension Test.' These are tests, relative to your machine, that will show you if your thread is too loose on top. That can also cause nesting.
I don't recommend learning 'by trial and error' because it can be a big waste of time, money and materials, not to mention the frustration and disappointment. You may want to look over the instructions here for newbies (we LOVE you!!). While it is written for the Brother PE700, it is very helpful for other machines and is written for beginners.
Lastly, if you got that thread from your dealership with your machine, I just want you to know that 'aged' thread can be dry and brittle. They may have wanted to get rid of some items that have been sitting around for a while. Try a couple of drops of Sew Ease which is silicone based and let it dry on the thread. That only takes a minute or two to dry and will add life back to your thread.
There are many reasons for each of your concerns. My opinions are based on my adventures and frustrations.
Pat, The Avid Embroiderer
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