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I see the problem and yes it is "wonky". You may get better results by opening the Image Trace panel and adjusting it manually, but I don't really think that's going to resolve the issue to your satisfaction. You can of course expand the text after live trace and adjust the paths to correct it, but IMO the only clear solution is going to be recreating the artwork in Illustrator.

The one you attached is only text so that's not a big issue as long as you know what fonts were used. Obviously it could be a bigger problem for other artwork.