Testbeds for wireless IoT devices facilitate testing and validation of distributed target nodes. A testbed usually provides methods to control, observe, and log the execution of the software. However, most of the methods used for tracing the execution require code instrumentation and change essential properties of the observed system. Methods that are non-intrusive are typically not applicable in a distributed fashion due to a lack of time synchronization or necessary hardware/software support. In this article, we present a tracing system for validating time-critical software running on multiple distributed wireless devices that does not require code instrumentation, is non-intrusive and is designed to trace the distributed state of an entire network. For this purpose, we make use of the on-chip debug and trace hardware that is part of most modern microcontrollers. We introduce a testbed architecture as well as models and methods that accurately synchronize the timestamps of observations collected by distributed observers. In a case study, we demonstrate how the tracing system can be applied to observe the distributed state of a flooding-based low-power communication protocol for wireless sensor networks. The presented non-intrusive tracing system is implemented as a service of the publicly accessible open source FlockLab 2 testbed.