why image trace gives you 500 nodes on a shape that needs 50
if image trace gives you a "vector" with a couple thousand nodes on a shape that should have forty, that's not your settings, it's just what auto-trace does. it follows the boundary between colors in your raster and drops an anchor point along every little wobble. the wobble is anti-aliasing, the band of soft semi-transparent pixels on every edge that makes it look smooth on screen. the tracer reads that fuzz as a jagged line and faithfully traces all of it.
I ran a pretty simple owl illustration through it recently and got 522 nodes where a clean version of the same art is about 59. it's miserable to edit, every node is a handle in your way, and it's worse if the file's going to a cutter since the machine stutters along every micro-segment.
Object > Path > Simplify after tracing helps, just know it's destructive and softens corners. turning the trace settings down before you trace helps too but you lose real detail with the junk. honestly the bigger fix is upstream, a flat hard-edged source traces way cleaner than a soft ai render or a compressed jpg.