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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.
Raster to Vector Conversion
How to Make PhotoShop Pictures Easier to Vectorize and Cut: Trace
Importing Vector Designs into Trace
Trace Vectorize
Vector Versus Raster Format
Vectorize Tab: Trace
Tangent Threshold: Cutting Default Setting
