Imagine all of the people cutting into that inexpensive wood without air filtration is terrifying
It’s the plastic stuff that is a bit nasty.
Even in expensive homes in my area it's common because it has a lot of nice properties. Homeowners will pay $15/sq ft, which at that price you could get a real wood floor installed, for LVP that looks pretty realistic, is easy on your joints due to the nice underlayment, and is basically as indestructible as a tile floor.
The wood used matters, and the way it's finished matters a lot, with hardwood floors. You can get anything between amazingly-resilient and scratches-badly-if-you-look-at-it-funny, depending on how it's finished.
Lots of contractors cheap out on the finish, and pre-finished hardwood is pretty much always bad.