I tried to import the image into Design Studio but couldn't get the picture to trace well. It kept seeing the white behind the block and I finally gave up. I have the Mac version of MTC and imported the screenshot. I cleaned up the picture and used the layers setting to separate the pieces. The problem with importing raster images is that the software sees 2 lines (the edges) instead of one single line. I think MTC does have a setting to do single lines but I'm not sure where it is.
I made the drawn circles real circles and put the block back together. I sent it over to Design Studio and it showed up almost true to size and in one piece. I changed everything to the draw setting and drew out the pieces on fusible webbing. Cool!
I realized I hadn't tried cutting fabric and using 505 basting spray on the fabric, I placed the fabric on the mat and taped down the piece. I used the fabric setting and it cut! Now for machine appliqué, I don't think the fabric is stable enough to satin stitch. You would need a fusible webbing for the back.
I don't know if the Explore fits a pencil as I'd hate for the pen to bleed through to the fabric when using an iron. What I'd have to do is separate the pieces and add a shadow layer for the cut line. How easy it would be to import into Design Studio, I don't know.
By the time I'd done the editing, imported it to Design Studio and started drawing/cutting I could have had most of the pieces traced onto paper and pressed onto the fabric. I don't think doing it this way would save time. However; if you needed a ton of little tiny flowers or leaves this would work. I can even see putting different fabrics on the mat to get an entire flower done at one time.
I haven't tried to cut with fusible webbing on the back of the fabric. It's after midnight and I'm tired.