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An arc fault circuit interrupter looks for something different than a standard breaker. A standard breaker watches for too much current. An arc fault device watches for the electrical signature of arcing, the small sputtering discharges that happen when a connection is loose or a conductor is damaged.
This matters because arcing does not necessarily draw enough current to trip a standard breaker. A cord pinched behind furniture, a nail driven through a cable during a renovation, a terminal screw that was never quite tightened, all of these can arc for a long time without ever exceeding the circuit rating. They can also start fires.
The device works by pattern recognition. Normal switching produces arcs too, which is why the electronics have to distinguish between a light switch operating and a damaged conductor sputtering inside a wall. That distinction is imperfect, which is the source of most complaints about these devices.
Requirements have expanded steadily. Early requirements covered bedrooms. Later code cycles extended protection to most habitable rooms. A home wired decades ago will have none of these, and there is no retroactive requirement to add them. That said, when a panel is replaced, the new installation generally has to meet current requirements, which is one reason a panel swap costs more than people expect.
Nuisance tripping is the common complaint. Certain vacuum cleaners, treadmills, and older power tools produce arcing signatures that look enough like a fault to trip the device. Some LED drivers and dimmers do the same. If a particular appliance trips the breaker consistently and everything else on the circuit is fine, the appliance is usually the cause.
There are also genuine faults being caught that people mistake for nuisance tripping. Shared neutrals between circuits, a common practice in older wiring, will trip these devices reliably because the electronics see current returning on a path they are not monitoring. That is not a nuisance. That is the device correctly identifying a wiring arrangement it cannot protect.
Combination devices exist that provide both arc fault and ground fault protection in a single breaker. In some locations current requirements call for both, and one device satisfies them.
For more detail, see electricianwichita.com