Having engraved wood with my laser, I can attest that the wood would be "exposed raw" inside the lettering and the image confirms that a laser performed the work. This is evident due to the raised grain, which presents to the laser energy a higher resistance to being burned away.
You would not get such "irregularities" in the surface with a router and template.
It's not atypical to mask a surface with vinyl sign transfer paper or even ordinary quality masking tape prior to performing the engraving. This reduces the residue deposited by the burned vapors condensing on the surface.
The image you've provided would indicate that the wood was finished (sanded and varnished) and allowed to dry, then masked, followed by engraving.
While masked, after engraving, additional treatment can be performed. I've masked wood surfaces, engraved deeply, then applied thick acrylic paint to form an inlay of sorts. After drying, the masking is removed, as in the photo you've provided.