Hello, \tracinglostchars is ignored:
% luatex --ini
\catcode`\{=1
\catcode`\}=2
\catcode`\^=7
\tracinglostchars=1
\font\f=cmr10\relax
\f
\shipout\hbox{a^^df}
\end
Version: beta-0.70.1-2011061416 (rev 4277)
The message
"Missing character: There is no ^^df in font cmr10!"
is not printed in the .log file unlike TeX or pdfTeX.
Yours sincerely
Heiko Oberdiek
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