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The Vectorize Image function turns a Rastor (Image) into a Vector (Cuttable Format).
In the Design Editor it can be saved as a Deboss, Pen or cut in Vinyl.
In Trace it can also be saved as a cuttable CutArt.
Note that the Vectorizing utility in Trace has additional parameters that can be adjusted if you need more control of how an image is Vectorized.
This is simply a Raster to Vector Conversion.
