org-babel is a really cool extension of org-mode and Emacs. But it is only useful for Emacs users and therefor useless for any professional use-cases. As much as I love Emacs expecting people to learn it is a bit too much.
I haven't tried this specifically with org-babel, and as other commenters in the thread state, Terraform/Ansible may not lend themselves to org-babel quite so easily, but it's certainly possible. Although maybe not worth the effort unless you really push hard for a team to document their infrastructure code in this way.
I've been using guile and noweb, with a tangle I wrote myself, for literate devops on top of Guix and it works better than anything else I've tried.
You don't have to use Emacs for everything just because you use a certain application of it.
Emacs is absolutely suitable for the use case of a professional developer writing these things.
The literate programming notebook approach is very interesting. Better IMO is to reverse it and write copious comments throughout an idempotent script that you can continually edit and re-execute.
In either case, the final product that you share with others are your notes and an actual deployed configuration for a real system, not a config file for an IDE.
One of Org's unique advantages is the pliability it has by virtue of running in Emacs. I doubt whether someone who was forced to use it would have the intrinsic motivation to climb the notoriously steep learning curves for both Elisp and Emacs. Subtract Elisp (and with it, the ability to do any debugging or customization) and you're left with stock Org mode running in an inferior text-editor.
Maybe stock Org is still enough of an improvement over Markdown that it's worth the overhead of learning Emacs, but I'd have a hard time making that pitch to my coworkers.