Fidayi_Kaizer a traceroute shows the path a network packet takes through the internet from your computer to the game server.
Network packets travel through routers. A traceroute shows all the routers along the path, what your ping is to each router, and how much packet loss is at each router.
Hop 1 in a traceroute is your home router. The last hop is the game server. All the hops in-between are the routers the packet travels through.
battlefield 2042 high latency | EA Forums - 6965215
With that said, interpreting packet loss in a traceroute isn't straight forward and can be misleading. Usually packet loss at the lowest number hop will cause packet loss for all the higher number hops.
Hops that show 100% packet loss don't necessarily mean that router is actually dropping packets. It might simply be configures to not respond to ICMP ping requests.
To answer the second part of your question about how a traceroute might help resolve the issue. There's a good chance the traceroute will show where the packet loss and/or high ping is occuring. Which could be at the home router, ISP, or inside the game server data center network.