While I agree with Raymond that the interpreter should be left alone,
this could be reclassified (and reopened) as a doc issue.  The current
trace doc (Lib Ref 25.10) says rather tersely "The trace module allows
you to trace program execution, generate annotated statement coverage
listings, print caller/callee relationships and list functions executed
during a program run."  This could be augmented with a general statement
that the effect of certain statements may get computed during
compilation and not appear in the runtime trace -- or a more specific
statement about continue, break, and whatever else.

AS for continue.py, it seems that the apparent non-execution of a
continue line indicates one of two possible problems.

1. The if statement is equivalent to 'if True:', at least for the
intended domain of input, hence redundant, and hence could/should be
removed.
2. Otherwise, the inputs are incomplete as far as testing the effect of
not taking the if-branch, and hence could/should be augmented.

Either way, it seems to me that the lack of runtime execution of
continue, coupled with better documentation, could usefully point to
possible action.