Ortur Laser Master 2 Pro engraving in horizontal (0 degree setting)

I am having an issue when engraving in the horizontal mode (0 degree setting). engraving in the vertical (90 degree) seems OK. I have attached two files that show the issue. I have not engraved something this small before. The circle is about 2 inches in diameter. I have engraved things like this before but much larger in size.

What could be causing this issue.