Looks like Secure Keyboard Entry in iTerm2 was the culprit. After I disabled it via Cmd+Option+S, Witch has been able to successfully intercept Cmd+Tab.
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Detailed steps to reproduce the problem:
What happened: Standard macOS window switcher appeared.
What should have happened: Witch window switcher should've appeared.
Perhaps, in order to implement "Exclude from Dock and Cmd+Tab Application Switcher" (which is unchecked on my machine), iTerm2 intercepts Cmd+Tab in a way that interferes with Witch?
Thanks for filing an issue! Please answer the questions below so I can help you.
Detailed steps to reproduce the problem:
What happened: Standard macOS window switcher appeared.
What should have happened: Witch window switcher should've appeared.
Perhaps, in order to implement "Exclude from Dock and Cmd+Tab Application Switcher" (which is unchecked on my machine), iTerm2 intercepts Cmd+Tab in a way that interferes with Witch?