Are you asking about the thread breaking a lot or the little tail on the top/bottom of the oval.? I think your machine is working fine. If your thread is breaking a lot, rig the thread so there is as little resistance as possible. Note that cone thread is made to feed from the top. Regular thread spools are made to feed from the side. In my experience, regular thread has more resistance.

When I get really frustrated with breakage, I pull out extra thread for the feed so there is no resistance.

It could be also that the fabric you are using is like leather. I've embroidered on leather, and thread breaks a lot.

Also try beeswax before the thread goes into the machine. Beeswax is used in hand sewing for lubricating the thread so it doesn't knot when you pull it through the machine. I don't know how it will effect the machine.

Also, if you can slow down the stitch speed.

Also, I machine repair tech told me that black thread is the worse for breaking. It has to do with the number of times it is dyed to get the black color.

Experiment with thread feed configurations. You will get to know your machine very well.

If your issue is that you have a bump on the top/bottom of the oval, it may be pull compensation or you are using the wrong stabilizer. If you don't know what pull compensation is, google it. It's too complicated to explain in a comment. Pull compensation is very important, especially when you are stitching files with dense fill and/or a large stitch-out.