what you are seeing is the cut-path which is the centerline of the cut, that's why it looks odd
the cut-path does not resemble the original clipart nor does it show what the final part will look like
if we don't scale the clipart, it is about 8" tall
if we apply .06" kerf compensation (looks odd)
at that scale the red areas won't cut, they are too narrow for that kerf
and the .06" wide centerline cuts appear too wide relative to the overall design at that size
if we scale 200% to 16" tall then there are fewer and smaller red areas that are still too narrow to cut
and the width of the centerline cuts is more appealing
so, it will cut ok at 16" tall with .06" kerf, but it'd have to be a little larger than that for .06" kerf to cut every last detail
you could edit those narrow spots to make them wider for a perfect cut at 16" tall
cutting at 8" tall with .06" kerf would not come out too good at all
even a vinyl cutter with zero kerf would struggle to cut that design much smaller than 8" tall because that amount of detail just can't easily be crammed into that small of a space (when cutting through most material that comes in a sheet) - that's not to say it can't be cut smaller (an engraver could make it less than 1" tall)
the benefit of using vector clipart is that it is infinitely scalable - so you can scale it to any size you need for any machine and any material - but the tool size and material does limit how small any given design can be cut succesfully