Hello all been a while since I've been here, so busy.

I'd probably make a patch too. Satin stitch the edges well, use a sturdy material and poly thread. I'd also glue it down so that if someone takes it, they can't just remove it by cutting the threads.

I also would do a patch as graceandham has already suggested, then sew it onto the sleeping bag. If it is a very light weight or if it would not be difficult to open a seam so you could hoop just the outer material layer and embroider the name then resew the seam so that the back side of the embroidery would not show on the inside of the sleeping bag then that would also be an option though a much more labor intensive way to add a name and just thinking through the steps would make me again choose to do a patch and then sew the patch to the sleeping bag. Good Luck and hope which ever way you decide to add the name hope it works out perfectly!

You just hoop your tear away and pin as close to your stitching area (flattened) as possible. Set your name up so that the sleeping bag lays to the left of your machine over the arm and be SURE that you have a table there to support the extra weight.

It's so thick and so many layers, I'd make a badge (patch) and then stitch badge on by hand or with sewing machine.