Nice looking project. As for the peeling issue, I go through that too. I sand mine with 220 before and after cutting. I use the blue painters tape and the final sanding brings it back to super smooth except for the large ones. Be careful not to sand though the top veneer. Using a water based paint will raise the wood fibers so sanding sealer is a good way to help correct that. Also works on soft woods that get blotchy when staining them, pine for example. Spraying the pattern and applying it directly to the wood is another way for help prevent this. Wet it down with mineral spirits then lift, wipe off the remaining adhesive with a soft cloth dampened with mineral spirits then set aside and let it dry. Seems the BB they are putting out anymore is not the quality I got used to back in time. Sometimes you have to make adjustments your procedures to obtain the product your producing.