Cutting Misaligned

Unfortunately, that means you haven’t found the one screw causing the problem.

Because the backlash seem to appears along the Y axis (vertically in your letters), it’s most likely one of the setscrews connecting the Y axis motor to the jackshaft across the back of the machine.

The pix in this post show some possibilities:

Toothed belt pulleys may have a setscrew buried under the belt between their teeth, so (with the power off!) rotate the shaft by hand so you can inspect the entire perimeter of the pulley.

Get out the hex wrench set, start at the motor pulley, and try to loosen each setscrew as you work your way to the laser head. The ones not giving you trouble will be nice and tight, the one letting the shaft move will be easily loosened.

If it’s on a shaft or coupler, rotate the shaft back and forth as you tighten the screw, so the screw ends up at the middle of the flat in the shaft when it’s firmly tightened.

As you’ve discovered, Hide Backlash doesn’t solve the problem. It just pushes the backlash somewhere else, where you may not notice it on this pattern. Unfortunately, the next pattern will reveal it in full glory, so the only way to eliminate it is to find that elusive setscrew.