Why the US still doesn’t have a contact tracing app for Covid-19
philippcannons.com
philippcannons.com
I.e. contact tracing is like a BFS search on a graph.
So, even if you trace the closest contacts, by the time a person takes the test and notify the network, those primary contacts (edge 0) might have infected their own contacts (edge 1) until basically you would need to isolate the whole population.
As you described, once an outbreak has a foothold in most areas, most people will be within one or two hops from someone who is infected. Also, the potential useful period will be shorter when the incubation period is long. Two weeks of incubation provides a lot of opportunity for someone to spread the infection.
And Google “Patient 31 South Korea” to get a nice visual of the problem