Over time conflicts between the id's primary job (uniquely identifying something) and the extra semantics can arise, and the solutions tend to get pretty messy.
Here we have a unique id that embeds a timestamp. The classic conflict here is with privacy/security. A UUIDv7 user id tells you when the user was created. A UUIDv7 of a medical record tells you when some medical event occurred.
There are things whose identity is inherently time-based and not private, so I'm not giving a blanket recommendation to not use these. Just understand what you are signing up for.
For a database, you can use bigints for primary ids but only internally. Then you also have an external random (v4) uuid... and a timestamp if you want, for that matter -- now that it's a separate column, you can expose/hide it on a case-by-case basis, depending on need. So this gets you the benefits of a uuidv7 but maintains flexibility, though at the cost of some complexity and extra bytes/record.
Other conflicts can arise too, and they can be hard to always foresee, so generally be careful about extra semantics in unique ids.