Image does not properly wrap around object.

@Danny Dimension auto wraps the image when you select a decal & makes it dead when you do a fill... this is a design thing i.e, made that way by the team. if you want a wrap to go all the way around then use a fill

see example

https://community.adobe.com/t5/dimension/image-does-not-properly-wrap-around-object/td-p/10341784

Is the white band straight and horizontal in your original artwork? If so, it will need distorting for the slightly conical shape of the coffee cup. What application did you create the artwork with?

you have it set to decal... to wrap all the way around it needs to be set to fill

share the Dn file if you want us to have a go for you