The letter height here is fortunate as it does not wrap around the tube a large amount.
different graphics will not be so friendly.
a graphic designer should be able to adjust for this single plane error from a curved surface- my take would be 4 to 5 images around the tube to reference and maybe even splice them together- I did that once in the pre digital era using a self made mount to keep the camera orientation and focal length accurate. A copy stand camera mounted on a board where the frame could swing freely under would be nice.

there is vinyl that is specifically designed as a paint mask material.

For the do do it yourself types, the "weeding" of the unwanted vinyl is a bunch of work- the more intricate the higher the effort. Any interruptions in the vector file letterform closures will bite you. A way to test is to color fill the letters on screen to make cure all is attached to each other.

from the description, I think the most important is the art creation- the step that is glossed over.