Nitinol (NiTi) alloys produced via laser powder bed fusion (LPBF) exhibit promising potential across diverse applications, yet their suitability for devices necessitating repetitive actuation confronts uncertainties regarding microstructural evolution and functional fatigue behavior during cyclic operation. Our investigation unveils that damage accumulation during thermal cycling stems from geometrically necessary dislocations formed through finite-scale incoherent interface motion, contrasting earlier hypotheses attributing LPBF-induced dislocation activity as the primary contributor. Damage accumulation during mechanical cycling is characterized by notable multiplication of cyclic dislocations via dislocation twinning interactions, rather than severe martensitic plasticity. These newborn cycling dislocations inherit martensite's crystallographic characteristics, exerting a distinct influence mechanism on martensite transformation and deformation behavior, diverging from conventional studies on function fatigue in traditional NiTi alloys. This study sheds light on the distinctive damage accumulation traits observed during thermal/mechanical cycling of LPBF-fabricated NiTi alloys, offering valuable insights for probing their functional fatigue mechanisms.