I've tried different image formats (PNG with and without white backgrounds and a jpg).

The problem happens when I have to select the image to trace. I've tried all the 4 methods (like marquee, eyedropper) but none do anything. At this stage, basically the images do not respond at all to any of the selection methods.

(please see screenshots).

I read online that maybe i had to enable the Autotrace checkbox in Add-ins, BUT it was already enabled.  Then i read online that I need to reinstall(?) some .DLL files but that didn't work.

Example SW file attached.

Thanks for any and all help!