Propofol is specifically used to suppress memory of lighter surgery and procedures. Patients are conscious enough to answer questions and respond to requests, but they won't remember any of what happened.

I don't know enough about it to guess whether it actually eliminates psychological trauma or simply suppresses it so it's not conscious.

Alzheimers had a similar effect. There's a shortening window of memory which starts off normal and then gradually contracts. In mid-stage victims can't remember the start of a sentence by the time you get to the end of it.

Eventually all that's left are autonomic functions and perhaps a few very deeply engrained emotional memories.