Thanks very much for that detailed answer!

It’s primarily used on paper. You lay your fabric pieces over the paper pattern to transfer lines onto the pattern. It does pierce the fabric, so I’d recommend using only on mockup/trial garment pieces, or on final fashion fabrics where the points will be within seam areas and not seen on the outside of the garment.

If you are using a needlepoint wheel to copy a garment onto fresh paper, pay attention to the fabric because you don’t want those tiny holes to become permanent. With some fabrics you can work the fabric to reduce those marking holes, though. But some tightly woven fabrics will “hold” the piercing points. Again, the tracing wheel is used mainly for mockups and pattern work, not for final fabric sewing.

A “pounce wheel” is different. The spikes are less spiky and it comes in different sizes.

I’ve heard that name used too!