Literate programming is based on the idea that you should explain what software does and how it does it in detail so that a reader can follow along and learn. That works great for TeX, which hasn't changed significantly since 1982. It works less great for say, Google/Alphabet, which wasn't even the same company last week.
The general problem with documentation is that it gets out of date as the software evolves to fit new requirements. Most real-world products face new requirements on a weekly, sometimes hourly basis; as a result, most fast-growing startups have oral cultures where the way to learn about the software is to ask the last person who worked on it.