CRDTs essentially work by deterministically picking one side when a conflict arises. The issue is that in general this does not guarantee the lack of data loss nor data being valid (you can resolve the conflict between two pieces of valid data and get invalid data as a result).

Imagine if every git merge conflict you got was resolved automatically by picking one side. Most of the time it would do the wrong thing, sometimes even leading to code that fails to compile. Imagine then you were not there ready to fix the issue, it would lead to even more chaotic results!

This is why CRDTs are not more widespread, because they only fix the problem you think you have, not the problem you actually have, which is to fix conflicts in a way that preserves data, its validity and meaning.

And arguably they make this issue even worse because they restrict the ways you can solve these conflicts to only those that can be replicated deterministically.