.. looks like the fonts letters are touching... change the spacing?
No , some space is there between font's .
Maybe because the top row of text is touching the line?
Sometimes the font is "underdeveloped" and has open or overlapping outlines.
1. There is an intersecting line in this sketch for positioning the text. Change it to a construction line.
2. The arrow for the project shows up - away from the face.
3. I do not understand what you want to achieve. Why projecting a 2D sketch as a curve on the same planar face?
4. Maybe a split curve would be the right choice?
Put the positioning sketch/line in a different sketch.
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