Others have mentioned their difficulty in distributed systems; but even for traditional enterprise workloads, serial IDs don't scale very well. They force all writes through a single, transactional bottleneck, so you can't shard your data. UUIDv7 and friends lets you guarantee that records get a unique identifier without that coordination cost. There are also scenarios where you need to have access to an ID before the write to the database succeeds.

Of course, lot of event/log data never hits a relational database at a all.. it gets piped right to a data lake. But those records still need IDs, too.

Many years ago, I was working at a small shop that used Oracle databases. We had different tenants for different customers. However, we still wanted records across different tenants to have unique IDs, so (as I recall) all writes to all tenants phoned out to a central sequence generating function. This became a major source of latency for us. This is jut one of many ways that serial IDs become annoying if you're doing anything other than running a 1990's-style RBDMS on a single server.

Anyway, once you try to solve this problem, there are lots of schemes that give you (almost certainly) unique IDs without coordination. Whether you pick UUIDv4 or v7 etc.etc depends on other factors. But one nice feature of UUIDv7 is that it is kinda, sorta serial, which is helpful for e.g. partitioning to work well.

Two major use cases I've used for this are distributed databases, so no coordination of series is required, and a specialized case of this, offline data creation for syncing at a later time.

UUIDs are one of the most misunderstood things in general, I think. Their entire point is that you don't need a central db to generate them.