In the end, a simple black, yellow and blue image ended up being 25 different colors and had edges on 25 different layers. It turns out that Flexi interpreted the yellow as 8 shades of yellow and created edges between the different shades of yellow and separated these edges onto different layers. Your vinyl cutter can cut lines, arcs and circles but cannot cut a pixel so all artwork must be converted to vector art so your vinyl cutter can cut it properly. Vector art format differs from bitmap or JPEG art format in that vector art contains lines and arcs to define the picture whereas bitmaps and their equivalents are just a pattern of pixels without any edge definition.
All text on all the Windows or Mac included fonts can be typed directly into a vinyl cutting program. All keyboard fonts are considered vinyl cutter ready vector art (VCRVA or VCVA).