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World action models increasingly rely on pretrained diffusion/flow-based video generators assumed to capture physical dynamics for prediction, planning, and action generation. Existing evaluations assess plausibility, probe representations, or measure predictive surprise, yet physical consistency is history-dependent: preceding events constrain what can physically occur later. We introduce PhysTrace, a training-free framework that uses MLLMs to formulate history-conditioned physical expectations and tracks their agreement with observed video windows through temporal video--language alignment, rather than relying on direct plausibility judgments or task-specific probes. On IntPhys2, PhysTrace achieves 67.2% possible--impossible discrimination accuracy, outperforming the evaluated direct MLLM baselines. We further introduce reference-guided masked denoising for controlled reconstruction from mixed possible--impossible video latents. To support these reconstructions and evaluate temporal localization as an additional capability, we introduce IntPhys2-Timing, adding violation intervals to IntPhys2, with PhysTrace achieving a Hit Rate of up to 77.4%. On these reconstructions, human evaluations reveal model-dependent differences in physical consistency and fewer physically impossible outcomes at higher initial noise levels, trends broadly captured by PhysTrace.