Trace rifles are fun to use but they run out of ammo really quickly that makes it a problem in pve and pvp. In pvp, trace rifles are easy to peak shot because of their limited ammo. Also, since Checkmate is starting to become more normalized, it is harder to justify using a trace rifle when 1) it's takes more time to get special ammo, 2) when you do get ammo you're getting outgunned by primaries and 3) other specials are more effective with OHK potential. In pve, they are also outclassed by primary weapons especially in endgame content and also run out of ammo quickly. They are only usable in pve when using double special so that you can exploit the game's ammo generation. All in all, trace rifles haven't been touched in years yet all the other special weapons have been buffed or reworked. It would be nice to actually see trace rifles get some love that they deserve.
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You’re not wrong, outside of Cenotaph Mask, Trace Rifles are extremely niche. More useful in PvP than PvE imo, mostly because of what other specials have for the situations where you would use them outside of add clear (which is what Trace Rifles keep focusing on). Outside of utility Trace Rifles (Div/Navigator/Ager’s Scepter), they’re Primary Weapons dressed as Special Weapons.