"For the treatment of mild-to-moderate coronavirus disease (COVID-19) in adults with positive results of direct SARS-CoV-2 viral testing, and who are at high risk for progression to severe COVID-19, including hospitalization or death, and for whom alternative COVID-19 treatment options authorized by the FDA are not accessible or clinically appropriate."
Basically the drug worked well but the risk of the mutations were high enough that it's only recommended for patients at serious risk of severe Covid who can't take any other therapeutics (primarily Paxlovid). Without vaccines and other treatment options, molnupiravir would have been a very important drug but we developed several alternatives so it'll likely wane to zero new prescriptions over time.
Now, to call it “widely” circulating/spread or “openly circulating in the general public” would be another story