Sketch N' Trace: Image To Mesh (& Curves) is a Blender add-on from Sahin Ersoz that converts or traces any image, including JPEG and PNG, into a 3D mesh or curve object. Mesh resolution is adjustable, and the image can be inverted, have its boundaries adjusted, or extruded during conversion.
The add-on generates outlines with adjustable thickness and resolution, sketchy 2D thick and thin outlines, bevels, and auto materials. While converting, you can draw, erase, deform, smooth, modify, and simplify the image. An Edit Trace button creates a GPencil version of the image so you can draw additions, smooth lines, or move them, and then the mesh is re-created with those changes. Sample images are included.
To use it, drag and drop an image into Blender, select it, and press Shift+T, or F7 for the SketchN Tools Pie Menu. Expand the menu panel at the bottom-left corner of the screen to adjust the settings.