Writing down your thoughts as you go and maintaining them takes serious time. The romantic notion of writing (and reading) code like a book is appealing, but writing books is hard and arduous, it cannot be underestimated as a craft on its own right, and there is coding to be done.
There is also the question of structuring the literate code. Telling a story of how you are building it or explaining how it works has a very different flow and order to how code is usually structured for good maintainability.
Please correct me if I’m wrong, because I would love to dive into it, but I don’t think there has ever been any major piece of software developed following literate programming (at least as Knuth envisioned it). I also don’t think there is any significant book that contains a sizeable working program embedded in it throughout, that can be compiled and executed as-is.
In practice Knuth was most concerned with embedding short code snippets in his papers and books. Having the whole thing be an actual compilable program was secondary, and it was mostly short academic proof-of-concept prototypes and algorithms.
Don’t get me wrong, I love the concept, that’s why I have given it multiple serious tries over the years, likely I will again, and why I think I have some insight of what happens when you use it for “real-world” work.