Hate to say it but do you think it might be fungal? Hopefully this isn't the case but that kind of what the description of the problem sounds like. Though the dry environment kind of contradicts that assumption. The best action might be to cut away the damaged portions, though I'd advise for someone to confirm that before doing so.

If it does turn out to be under watering then I'd definitely NOT suggest giving it a ton of water since the roots will likely be unable to account for the sudden increase of water.

Sorry I couldn't be of more assistance, and hope someone can provide more insight so your plant can continue to thrive.

I have been able to grow well any type of Jade I get my hands on, and I have quite a few, but the exception is this one. Seems to be a bit more picky than other Jades. A cutting I was given of this one just shriveled up and died on me. Took it as a bad sign, went on to ones that will cooperate.

Christopher

I also find Tricolor bit fussy - cutting stems often die off right at soil line. Sometimes right after potting, sometimes months later. It looks little like rotting off, except they are not rotten and it doesn't spread as rot would. At the same time, roots grow from the leaves just above and rest of the plant lives and grow. It is visible in the photo below - small plant on right that 'lost' part of stem and growing roots:

I don't know if this is usual but it happened with few cuttings. I have lots of new plants from cuttings, very seldom any totally die - one cutting(top right) has stem totally shriveled yet it grows:

I found some 'crystallized' leaves very few times, on Tricolor and regular jade - they were under-watered at the time, not sure if that is the cause. I don't spray or try to create more moisture, RH in my house fluctuate between 25-35%.

Rina

Rina - 'Crystallized' leaves are ones that have dried out. This is normal when leaves are absorbed for many jades.

Ealdwood - I find my tricolor is quite fussy. It's easily over watered in winter, but under watering causes leaf absorption and loss. Currently I'm watering it quickly/lightly as you are and found that helps.

Kevin, Thanks. Didn't think about them being absorbed - I associate that with lithops :) and also because there is so few over all.

I water Tricolor at the same time as other succulents, and water them thoroughly (until water drains out). Few are under the lights, many just on the windowsill.

At least jades don't take months to absorb a single pair of leaves. =)

Usually it's the older leaves that are dropped first. They are usually the ugliest ones anyway.

Thanks everyone! Seems like there is an okay chance the whole plant won't go down the same way as that branch/stem. My hypothesis is that it's sensitive to changes in its watering schedule. The first cutting I had was 3-4 leaves in extremely wet peaty soil, after repotting to granite/perlite/floor dry, that one shriveled up within a week. (After seeing rina's experiences, maybe it was just a living dead). For this one, I watered it a little late...

Nicholas- That makes sense, I will probably rot it if I suddenly drown the semi-dead roots with tons of water. I'll try to figure out what moderate water it needs (e.g. pour it near the affected stem or not). I see why you're guessing fungal, this plant did come with some iffy brown spots that I ignored after I didn't see them spread/didn't see any creepy crawlies but who knows...I should make sure they actually are not spreading..

Christopher- That's a smart move, this is my second try at the tricolor...Not sure I can bear this one shriveling up on me as well..or rotting..ugh. Especially after it was making all this nice new growth. Fine line between neglect and too much neglect. I feel like nurseries with the gigantic potted specimens hardly take care of theirs... Oo that reminds me of this one I saw in NJ:

rina- That is just really cool, I did not know this jade could continue to do so well after falling off. I do still have 4-5 leaves from my first try and they are technically still alive. Two of them (with a short stem) have rooted, the other (stemless leaves) ones are getting pinker...but not dead yet. It's intriguing to see in your first pic that it grew roots even though you didn't tuck it into the mix, and your mix is gritty too. I think I remember you said you don't really spray your cuttings either. Did you water/avoid watering that semi-shriveled cutting? I can't believe that stem budded in your second pic...that gives me a lot of hope.

Sorry, many questions..! What is RH? (Room heat?...I know I'm going to feel silly once I find out the answer,) Do you continue to water with that method (until water comes out) even in winter with central heating on?

kevin- But it's cool isn't it to see the new set of lithops leaves emerge from under. Very cycle of life/renewal.. When you say your older leaves drop first, did you mean your older tricolor jades leaves become crystallized/shriveled/absorbed first? Not that they also fell off like mine did? Now that I think about it...I don't think I've seen my tricolor absorb any old leaves yet...o_o hmm. My C ovata minor does it, but not the tricolor. That says something...

Ealdwood - Yes, your interpretation is correct. I had overwatered my tricolor, causing edema / some leaves to get those lumpy brown disfigured leaf areas. Typically, this affects in the older leaves first.

Now I am deliberately under watering my tricolor every week a little to get it to start absorbing and dropping those ugly leaves.

I suppose pulling them off would be easier... but this way I am making my plant to it. Not really sure which is a better method.

I think jades are a little more forgiving of winter watering than people think. As long as they don't stay sitting in water, they do fine with the same amount of water all year given the proper soil. They are also winter growers and this is the time they tend to bloom when outside so there is some action going on. Where I'm from, Central Coast of California, jades are grown in the ground, while we don't get much rain this is our rainy season and they do great up until it reaches freezing. I've only known jades to lose leaves when they are thirsty. The OP's plant looks like it is under watered.

Rina - More photos are always better!! Mine used to be very 'clean' until winter came. If I manage to clear up my plant successfully, I'll be sure to share (will not stop until I figure it out).

Kevin - if anybody can figure it out, you can! Pls. post your findings, and whatever needs to be done when available.

Rina

Love the pics rina, especially the two years progression shot!!! (Where did the little statue go :p) I think that tip, sprinkle some mix over when roots come out works for my jade leaves as well. But my sprinkle is more peaty.

Ah relative humidity, gotcha. I'm not sure what mine is but it's probably dry as heck. Do you just listen to the news and listen for dew point?

My brown spots came with the plant, since one of the leaf has a huge slug/snail chomp bite on it, I kinda assumed it was in some wet environment leading to the brown spots. I remember that pic of a tricolor of yours Kevin, really nice variegated white leaves. Looked very "clean" did it really get spots recently?

Metha-So jades are winter growers..no wonder the new growth for my jades recently...wow that makes things complicated. Hope it rebounds soon I watered it today (been a week or more since last).

I just happen to have thermometer that shows humidity too - I didn't buy it on purpose was a gift. Indoors humidity is on low end, but I don't try to increase it.

As Mentha pointed out, jades grow in winter. I keep all of mine outside, in full sun during summer and they really like it. I mentioned they are in very gritty mix, and good rain is not causing any problems. Just one more photo of mostly Tricolor cuttings outside (I have posted way too many photos before...:)

Hope your cuttings grow well, keep us updated.

ps: statue had to be removed - jades needed more space, lol.