Scott.
I haven't really tried to reproduce the fault, but I might have a solution.
There are quite a few spline curves in that file that could usefully be changed to polylines and then joined together before doing the transformation. So Ctrl A, Ctrl P and Ctrl J should sort the geometry before reassociating to the Engrave MOP (right click then 'Select drawing objects') and then transforming to the right location.
Martin.