Here is the process with text:
Here is the process with an IL made texture, you could also do it with a scanned texture:
You should be able to find creative things to do with this little tool, just experiment a little.
PS, if you want to add extra control points to the envelope distort, you have to actually go to the pen-+ tool, you can’t do it with the normal “ctrl held down on the normal pen tool” key command to add the point.