Yes. The same drawing will work differently depending on what you want to do with it. The process is different in each case.
EQStitch and EQ7 create applique from CLOSED shapes only. The Quiltmaker designs are line segments, not closed shapes. So to use for machine applique you need to trace the design, re-creating it as a closed-shape design.
EQStitch sees line drawings and can create embroidery stitches with open AND closed line areas. So you only need to click on the Stitch tab to automatically turn the designs into an embroidery file. No need to trace.
Follow these easy steps: http://doyoueq.com/lessons/quilting-in-the-hoop-with-eqstitch-and-quilting-designs/