"The key feature of literate programming is separating the order that code is written in from the order that the compiler requires"...
in the languages that were popular at the time Knuth wrote the definition, which were very rigid and uncompromising on layout.
We don't need specialized literate programming tools today because modern programming languages are already capable out-of-the-box of sufficient flexibility in organization that the additional marginal benefit of a superspecialized higher-layer toolset to weave pieces together is no longer worth the effort of learning and propagating out to teams. Yes, they technically can do things programming languages can't, but I could even honestly quibble on whether those things are a good idea.
This is why strict Knuth-ian "literate programming" has never taken off on a technical level and why it never will; by the time it might have gotten enough attention to really take off, programming languages had already largely incorporated the necessary additional flexibility that made it unnecessary to use specialized tools to write good code.
The human reason, of course, is that merely making documentation easier or nicer is not generally enough to get people to write it, and arguably literate programming makes it harder to write. Not because of the tooling being bad or anything, but because of the bar being raised really high to have "proper" documentation under its dictates. People can write plenty of well-documented, high-quality code in any modern language right now. They just generally don't.