CONTOURSM not getting expected results

Been trying to use CONTOURSM to get an outline of an exported PNG and JPEG (tried both, pure black, transparency on).

Followed instructions, made sure I had my image selected, but no dice


Saw a thread from last year saying there were bugs found, and that perhaps I should use TRACED, but wanted to ask as to what the current status of all of this is? I'd prefer to not have to trace my image by hand, but curious if this is the best option for me now


Thanks guys

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