I downloaded your xar file and had a go at copying the curve and tried pasting as an envelope and got the same results as you.
Perhaps you could try using a shape as a guide for the mold rather than pasting it as an envelope.
I drew a rectangle over your red 'envelope' curve shape with the four rectangle corner nodes overlaying the four red 'envelope' curve nodes; using guidelines to help. I centred the text in the rectangle, and then applied a 100% transparency to the rectangle. I grouped text and rectangle and applied the standard square mold, then I used the mold box curve handles to match the original red curve. The use of the transparent rectangle just helps in matching the red curve shape, rather than applying a mold to just the text.
Don't know if this way helps at all.
Regards
Su
"If there was anything that depressed him more than his own cynicism, it was that quite often it still wasn't as cynical as real life." - Terry Pratchett, Guards! Guards!
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