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If Bitcoin can be traced (which it can), then it isn't fungible.

That is not the definition of fungible. You can put a mark on a USD$100 bill and trace it, but it still has the same value as any other USD$100 bill, or 5 20$ bills, etc.

Then why does Coinbase lock accounts of people to transfer to darknet markets or such?

If you had the choice of receiving BTC from a brand new minted batch, or from a darknet market, which would you prefer? If you have a preference, then they do not have the same value.

I would value BTC from a darknet market less because of risks associated with spending it.

I would value freshly-minted BTC because it doesn't have any question about its providence.

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