We do at my team. I do not work on the Backend side, but I help in designing the DB schema.

Whenever I am thinking of new features to be developed, or when engineers are suggesting some features/approaches, looking at the ERD helps a ton. Onboarding is also easier.

We were using Lucidchart[1] until we reached the limit[2], so we found dbdiagram.io (which is just not the same).

[1] So far, it was the best of the market in terms of "canvas freedom" [2] We are struggling with salaries, so we are saving everywhere