Inserting design versus open design - (embossing disappears when inserting)

Hi,
I have created a letter that includes an embossed fill. If I ‘open” the letter it opens just fine, but if I try to “insert” the design the embossing goes away and turns into a tatami fill. Can you help me understand why that is happening. I am trying to combine a couple designs to make a larger one but I keep losing the embossing when I insert the letter.

Edit: I should have clarified that when I insert the design in the EMB format it works. But when I insert it in the PES format, the embossing goes away. I'm trying to understand why when inserting the design in the PES format, the embossing disappears.
(see attached file for example)

Thanks!

If you are working with PES files, check Software Settings menu > Embroidery Settings > Design tab and set the Recognize machine file to Leave stitches as individual stitches. With the other setting, Hatch is trying to convert to objects and it won't recognize "special patterns."