That looks like you have at least two problems:
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It appears to be very out of focus. Since you said diode, look at using the ‘Laser Fire’ button to turn on the diode at low power to adjust the focus. Read here: How do I turn on my diode at low power to focus it or frame a job?
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You are cutting the traversal lines, which likely means you are using GRBL, but don’t have Laser Mode enabled. Read here: Laser not turning off between cuts?
Even with the first two problems fixed, for cutting, you’ll probably need air assist as well.