I'd like to report a bug but don't have organizational permissions.
When using the trace tool to reshape polygons, after some unknown amount of time or particular workflow, the tool stops tracing unselected features.
If you can only trace the selected feature, you cannot reshape your polygon - it will only trace what you are trying to reshape.
I can only reproduce the bug by continuing to use the tool until it happens. I'm unaware if there is any specific situation that causes it.
Workaround:
Change the state of the "Trace selected features only" checkbox (check it if unchecked, uncheck it if checked), clear your selection, then use the tool again.
It doesn't matter what the state of the checkbox is when you do this. Changing its checked state will change the tool's behavior.
EDIT: I will attempt to capture a video of this happening next time it happens. I spoke with 4 others in my organization and they have seen the same behavior.