This is working in the Docks, when it shouldn't be, and not working in the Foothills and Tangled Woods when it should. It may also not be working in other areas. I'll have to check. This is on T'Kembe Utucha.
I'm pretty sure this works properly in the foothills and tangled woods.
I can confirm that it does not work in the foothills because I died out there to something that should not have spotted me. When I looked at my character sheet while bleeding, my trackless step bonus was not being applied.
Could have been because I was bleeding, but I didn't think it worked that way.
I see no problem with it working in the docks, but it should work in the other mentioned areas as well.
It is actually a bonus where any other, so if you do go into subdue, or bleeding, you will lose it like any buff - until you re-enter the area, or relog (not sure about this last one).