I think you chose this instead of MongoDB like you would chose SQLite instead of MSSQL. The library is very similar to Mongo's .Net library, so its almost a 1:1 code replacement.
I guess it depends on what's important.
Some people primarily care about the API. Other people focus on the operational story.
Another thing is you might want the lack of features. I.e. you want it so people don't do joins etc. Because you want the team to use the same paradigm with local data as with server hosted. I can think of reasons why.
The native Sqlite wrapper libraries such as Microsoft's Microsoft.Data.Sqlite have faster performance than EF, but because you're forced to pass around SQL strings, most .NET dev's don't prefer to use them.
Perf with litedb is pretty awful in my experience if you're using it as a schemaful db. But it's probably the wrong tool for the job if you're comparing to sqlite. I've yet to come across any embedded db that can do schema + document with decent performance.
I am yet to find a modern up-to-date tutorial and implementation of System.Data.Sqlite that offers encrypted database support without making my brain melt.
The ergonomics could be better, but this enabled query execution to avoid heap allocations and reflection.
SQLite is slower than LiteDB in this benchmark project created by the LiteDB inventor
https://github.com/mbdavid/LiteDB-Benchmark
https://github.com/mbdavid/LiteDB/issues/291
Another (lesser) reason is the similarity to MongoDB methods, if that's what you are used to it will feel familiar, but no MongoDB server needed.