You need to do two things.
First. draw 3D before 2D
protected override void Draw(GameTime gameTime)
{
GraphicsDevice.Clear(Color.DeepSkyBlue);
#region 3D
ship.Draw();
#endregion
#region 2D
spriteBatch.Begin();
spriteBatch.DrawString(fontArial, "Demotesting", new Vector2(100, 100), Color.Red);
spriteBatch.End();
#endregion
base.Draw(gameTime);
}
Second you should ensure that you are resetting the graphics devise to the default for model rendering
See Here[
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