I'm trying to create an embroidery pattern from an image scanned from a magazine using the Auto Punch function. how do I erase the background in the image?

Windows has a program called "Paint" (normally found within the Accessory menu) as a standard application. You can remove unnecessary areas using the "Eraser" tool of this program. Increasing the "zoom" under the "View" menu will also help eliminate unwanted areas.
After erasing the background, save the pattern and use Auto Punch function to create an embroidery pattern.

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