Weather conditions, ground/runway conditions, obstructions, mechanical issues. There are tons of edge cases with huge consequences for error. Same reason self driving is not a solved problem, but with dramatically less tolerance for error.
Not that it can ever be fully automated but it seems like much easier problem to solve.
Sometimes the transponders will be faulty, sometimes you have to direct a broken aircraft safely to the ground with no transponder available.
And sometimes you are doing ATC for a zone that does not, in fact, require transponders (those are required only for the strictest controlled zones, not in general)