My wife had a uniform/apparel business including own embroidery machines, so I know a bit about the industry. I would create the simple text embroidery files for like peoples name etc, her but the more complex designs were outsourced. Each name had to be a seperate file loaded into the embroidery machines computer.
So if she had to run 7 shirts on an 8 head embroidery machine then she would load the program into the machines computer, say "St George Dargons Gutho" then hoop 7 shirts on the machine to be embroidered.
Then if she had to do 6 shirts say "St George Dargons Flanno", the the embroidery design would be edited to remove Gutho and add Flanno into a brand new embroidery file to be loaded into the machine to only embroider 6 shirts as St George Dargons Flanno. The spelling mistake is overlooked in this case and will continue on.
For a fair few years now the NRL jerseys are sublimated with all the designs, emblems, player numbers and sponsors no embroidery necessary.
On special occasions, I'd say that Classic outsource the embroidery to a Chinese sweat shop (not being racist, I just know the industry) and if they get the embroidery spelling wrong then it stays wrong as each shirt has to be run individually. Classic as the shirt supplier should be spell checking all embroidery.
My wife learned pretty quickly to always run just 1 test run of a new design with one hooped on scrap material to check for stich quality and spelling. It's really not that hard if you know what you are doing.