Trace of Shadows is a House Serkis faction quest in Crimson Desert that follows up on Traces of Intruder, sending you to dig and search for two more notes left by the Great Thief of Hernand. The objectives are short on paper but easy to fumble, mostly because the dig prompts are finicky and the Duskwood clue is tucked inside a stone puzzle.

Requirements before starting
You need to have finished Traces of Intruder, the previous House Serkis quest, which is what unlocks this step in the Secret of the Lost Seal questline. A basic shovel is required for the digging objective.
If your dig prompt fails to appear at Three Saints' Falls, swap to a non-refined, basic (Tier 0) shovel. Refined or upgraded shovels can break the interaction on these specific dirt piles.

Track the traces at Three Saints' Falls
Fast travel or ride to Three Saints' Falls and head down to the pond at the base of the area. The clue is on the small island in the middle of the water, not on the cliffs above.
Step 1: Equip a basic shovel from your inventory before approaching the island. The dig interaction will not appear unless a shovel is currently equipped.

Step 2: Walk across the patch of land and look for the cluster of small dirt mounds. There are several piles spaced close together, and only one contains the note.
Step 3: Approach each mound until the dig prompt appears, then dig. Continue through the piles until you pull up The Thief's Third Note.

Step 4: Open your inventory and read the note. The objective will not tick off just from picking it up; you must examine it manually.
Track the traces at Duskwood
The Duskwood marker sits west of Hernand, just past the Kilnden Workshop. When you arrive, you'll find the Duskwood Waterside Ruins, a stone board puzzle with black and white pieces. You do not need to solve the puzzle to finish this objective, although completing it rewards an Abyss Artifact.
Step 1: Open your minimap and locate the purple scroll icon near the board of stones. That marker pinpoints the row where the clue is hidden.
Step 2: Equip your lantern and raise it near the stones. The correct white stone will be highlighted, distinguishing it from the others on the board.

Step 3: Pick up the highlighted white stone. Underneath, you'll find the Clue from Duskwood (a scroll) and the Piece from Duskwood (an object).
Step 4: Open your inventory and read the scroll. Then, examine the Piece from Duskwood and rotate it to inspect the back side as well. Both interactions are required to complete the objective.

Organize the leads with Marquis Serkis
Return to the town of Hernand and head to Oakenshield Manor on the west side of town. Marquis Serkis is upstairs on the second floor, in the same chamber where you spoke to him during earlier House Serkis quests.
Speak with him to trigger a cutscene where the gathered clues are pieced together. Once the conversation ends, Trace of Shadows is marked complete, and the next House Serkis quest, Where All Comes Together, opens up.

Common reasons the quest stalls
Once the cutscene with Marquis Serkis plays out, Where All Comes Together takes over and points you to the final location in the Secret of the Lost Seal arc, which closes out with another puzzle.