It may be that I don't notice when I use it, if the page just translates itself into XHTML and I would never know until opening the developer tools (which I do often, fwiw: so many web forms are broken that I have a habit of opening F12, so I always still have my form entries in the network request log). Maybe it's much more widespread than I knew of. I have never come across it and my job is testing third-party websites for security issues, so we see a different product nearly every week (maybe those sites need less testing because they're not as commonly interactive? I may have a biased view of course)
I think I've read some governments still use it, which would make sense since they usually don't have a super high budget for tons of developers, so they have to stick to the easy way to do things.
As much of a monopoly as Chrome is, if they actually try to remove it they're likely to get a bunch of government web pages outright stating "Chrome is unsupported, please upgrade to Firefox or something".
Which government or governmental organizations are you talking about?
[0] https://news.ycombinator.com/item?id=44909599
[1] https://www.congress.gov/117/bills/hr3617/BILLS-117hr3617ih....
(but I take your point that there exists at least government in the world that uses it)
Practically every WordPress site with one of the top two SEO plugins (I'm not familiar with others) serves XML sitemaps with XSLT. It's used to make the XML contents human readable and to add a header explaining what it is.
Every (Wordpress) site with an SEO plugin should be fine, since the search engines can still read it and that's the goal of an SEO plugin