I have a document that has images of different shapes.
However, they all have boxes around them when selected. Even choosing "image Trace" just creates a solid box around the object.
My printer cannot see the cut lines from the shapes, they only see the sqaure boxes.
(image normally has a transparent background, but I have color background here to show shape)
What am I missing?
Are we talking about the Bounding Box, which you can toggle on and off with Shift+Ctrl/Cmd+B (or View>Show/Hide Bounding Box)?
That would not print.
I see no box in your image, only the white (unselected) path on the brown background.
I need to make die cut lines around the white image shape. However, my printer cannot see it and only can see the bounding box portion (the entire brown area square)
The printer documentation should tell you exactly how to set up the file.
I believe the boundaries of the brown box is the the Artboard: the vertical sides of the Bounding Box ought to follow the vertical top sides of the white path, and the horizontal sides ought to go through the topmost corners/bottommost corner.
You may need is to give the path a stroke with a specific Stroke Weight and a specific (maybe spot) Color for die cutting.