For your background, delete the black bitmap and draw the path (a square rectangle) in AI.

I have no idea what all the little paths are for, so if you don't need them, delete them via the layers panel.

You had a linked image, a GIF, in the lower right corner. No idea what it is as it was not embedded and you didn't provide it.

What is the goal for this drawing? The actual lettering (the word choice) is outlined and will scale without degradation. So is the problem with the GIF at the bottom right?

Mike