@kaleiponi Well let me start with the easy one first, in the Settings menu on the Laser Controller you can select Reverse Axis as needed to get the direction matching the arrow icons. You could swap wires but clicking the menu is easier
OK, now for the Engrave Frame (Laser ON) function. Does the laser switch on and off correctly from the manual laser controls?
If it does, set the manual laser power to 1000 and then test the Engrave Frame again. If you are using my default firmware (which I recommend) max power would be 255 but just to test it setting 1000 will guarantee maximum power.