I really like the look of this image but can't figure out how to replicate it:
I understand that rounded corners were used, and then texture within the letters, but how do you get the roughened edges? My attempts at zig zag or roughen don't make the same effect.
Chances are fairly high that those are simply fonts as they are designed. There are many "rugged" fonts which have hit the market recently...
If you are doing this manually, you most likely need to forget about any effects and start pushing and pulling anchors and handles around.
If it's not just a font, you can use opacity masks in Illustrator. See here: Is there an easier way to distress graphics in illustrator?
Choose any font you want and then simply apply a grunge texture on it that will be divided with pathfinder.
You can use any grunge effect you want online or in stock vectors. If it's an image rasterize and low quality, you can use the "trace" to make it a vector.
Then apply this in white on top of your text and use the "divide" in the Pathfinder panel.
Then clean up the white parts and you'll get the grunge effect you want.
You can also combine this with other effects for the edges to make them less straight. Or you can "roughen" the edges manually as well with texture again or a stroke, the same way you did the grunge effect.
That roughen edge on your example looks like a "fat" stroke. You can probably get the same effect by using a thick stroke with round corners. And then expand this, and apply a another thin stroke with a paintbrush or ink texture.
I explained it here and the other answers also show how to make the edges less perfect:
Giving a vector shape a rough edge without manipulating anchor points
