Trying to create an Offset issue

I’m trying to create an offset on an image. When I click on the outer line, the whole image makes the moving dashed lines and not just the outer edge. I’ve attached and picture and the lightburn file. Any suggestions?
Snip Christmas Bear
First Christmas Bear.lbrn2 (224.5 KB)

I think I figured it out. I ungrouped the picture, then it allowed me to create the offset of the outer edge.

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