I have been working on a project that utilizes the Pen extension to write text. For some reason when I am running the index loop. The first letter is at 67 and the rest are at y 140 which is what I want it to be. I put a Set Y to 140 block 3 times before and after the repeat loop happens and before the costume changes but nothing seems to work

right. This is a bit complicated.

So, your “Bluey” costume when positioned at 0, 0 is at the top bit of the screen, and scratch doesn’t like it when sprites move off-screen, so it “fences” the spirites to prevent them from moving completely out of view.

The problem you’re having is caused by the costume being hidden when moved to y=140, so scratch moves your sprite to y=67 instead.
If you put this code after your costume (and stamp):

switch costume to [Bluey v] // your previous code
stamp // also your previous code
switch costume to [W v] // swapped for a smaller costume to move it to the preferred y value
set y to (140) // the next code
…