We don't do it like that unless the letters are inset. We cut the hole in the metal/aluminium/acp/acm/mdf 1, 2, 3mm smaller depending on the size of letters and route/laser a clear acrylic filler between the backing panel and the letter or route the back of the letter down the thickness of the substrate to fit in the hole. Glue with weld-on or similar. Hundreds of signs like that...zero light leak or offset brightline around the letters.
If inset we use .25 - .5mm usually. If thermal expansion is a problem you may need to use up to 1- 1.5mm. If thermal expansion is a problem with the proud letters, usually large stuff we cut individual backs with a good size overhang so the letters float but are still captured on both sides of the substrate by the acrylic letter and backer.
EDIT...by large stuff I mean 600mm - 1200mm / 2 - 4 feet on solid acrylic. Larger than that are mostly always fabricated.