Datadog APM has enhanced its distributed tracing for serverless applications to provide visibility into additional serverless patterns. This includes Span Auto-linking, which automatically identifies traces related to S3 Event Notifications or DynamoDB stream events and connects them to provide end-to-end visibility. Additionally, Datadog now supports enhanced AWS Step Functions trace propagation, allowing users to link up- and downstream Lambda function spans to their state machines and visualize the full execution path of a request in a flame graph or waterfall view. These enhancements aim to provide deeper insights into application performance and enable faster troubleshooting of issues in serverless applications.