How do people steal BTC when it's traceable?

I'm probably just too naive, but I don't get how BTC gets stolen without getting caught, and I keep seeing these horrible stories of it occuring.

I keep thinking once they convert to fiat they will immediately be caught because all fiat off ramps are KYC. Is this untrue?

Even if they sell OTC it has to go another wallet which will have the same issue.

So then I thought maybe they just spend the BTC from a non kyc wallet, but I'm not even sure that would work because you could trace it to the vendor.

How is this working? How do they steal BTC and not get caught?