Tracing not working with DWG-turned-KMZ file in QGIS

I have this layer that came from a CAD software and was converted to KMZ so I can use in GIS (somehow the DWG and DXF doesn’t import properly in QGIS).

It’s a line geometry which represents an outline of something. I need to create a polygon based on this outline.

However, the Tracing tool doesn’t work in QGIS but works with other files (even files from CAD).

There are small sections in the outline that Tracing works but it doesn’t work mostly.