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I sometimes use Illustrator to create simple vector art from my line drawings, so it comes out as black with a transparent background.
It seems the only feature that works is the High FIdelity Photo and Low Fidelity Photo, which I don't want.
If you try to use the other presets, it shows a white box and the artwork disapears.
I don't know if this is a bug or if they changed how to use this feautre.
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Can you share an example file that comes out as a white box?
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I don't know if this was always the case but once I made the drawing black & white from Photoshop, image trace was working properly.
I would delete this post if I could 🙂