It would be nice to have someone one who is more used to engravings to help us here (that’s something I don’t do often enough to really get any expertise on) but on bent surfaces as a fingerboard I would do all the engraving after inlaying and leveling so I wouldn’t need to do things twice (as it happened indeed on my early works) but that could be just a matter of lack of experience and the proper engravers have their ways of doing it before without suffering any losses.
You can find nice videos of artisans cutting and engraving shells for fingerboards, but they are just flat pieces, and for sure some of the lines will disappear when inlaying on any radiused one. And of course the recess should be at least equal to the inlay piece thickness so you needn’t to sand away any shell, but what will happen as you get closer to the sides?
On the other hand, I’ve heard of people diving thin shells down to the bottom of the cavity well below the surface and then filling up with transparent resin (so they can use really thin sheets) Guess it works well but don’t know how it looks after all.