PolyQuilt Retopology Tool [Fork]

Hi, please try again in a new empty scene with a monkey and a empty mesh, then enter edit mode on the empty mesh and enable Snap (Shift Tab), the snapping should now work.

If it still does not, you can try this add-on I made that sets up everthing for you, just selecta a object and click "New Retopology at Active", and it should just work. https://extensions.blender.org/add-ons/key-ops-toolkit/

Here is a gif how it works: https://github.com/Dangry98/PolyQuilt-for-Blender-4.0/releases