What Matt? That's not a visualization of your amazing new holographic printing method for extra coolness for your product?
I haven't seen that one before. Did you try the multipart checkbox for a possible workaround?
All decals float off the surface in ray traced modes (fast or accurate). It's typically in the neighborhood of a .001 mm (1 micron) or less so often not very noticeable.
Your camera angle, and obviously the size of your part, will dictate how visible this effect is. I suspect that part is rather small... This old issue It has been chronicled in a few other forum posts on the forum here...
It's fixed in 2018 sp1.0
sp1.0 release note snippet... We referred to it at the "self-shadowing effect (ie decal actually casts a shadow on the surface below b/c it is actually offset from the geometry below it).
If you're stuck with 2017 for now, you could try scaling the object bigger, and then maybe some camera trickery?