I don't have the same machine as you, but if you're getting thread nests you can try the following.
First, clean out the bobbin area REALLY well. Re-thread your machine, making sure the presser foot is UP or the thread won't get caught up in the tension discs properly.
Then, try again and if necessary, change the tension. On my Janome, the shop told me to put the tension at 2 but I find I need it to be 3 or 4 for most projects.
Let us know how you get on.

A size 14 ball point needle would solve a few problems, as Islay said up the top tension, and I hope you are using machine embroidery thread and bobbin thread in the bobbin.

For knits, it's best to use a fusible stabilizer, fuse-a-knit will work.

I'm using a 14 needle, Janome thread and Janome bobbin thread and Fusible mesh stabilizer. I will take the machine off "Auto" for thread tension and try something else. Thanks for your help. If you have any other suggestions, feel free to comment.

Lynn

I have also heard that Janome threads are really bad. Get something else and try that.

For bird nesting, I would look at the following in this order:
Is it only ONE design, or does everything do this?
If one design, is it only one PART of the design?
Yes to above could and most likely does mean improper digitizing of the design or part of the design.

If not then look for;

Inadequate tension on the upper thread.
Inadequate tension on the fabric (Hopping).
Inadequate backing.
Lack of lubrication.
Dirty hook assembly, trim assembly, and/or needle plate.
Damage to needle hole in needle plate.