It really wasn't. There were people on here, including Oracle employees, claiming that the virtual thread implementation was a drop-in replacement that would work (not necessarily perform better, but work) in all cases.
I don't know if those Oracle employees actually did outright say -- or even imply -- "in all cases" as the GP asserted, but if they did, then "only" working in "common usage scenarios" would definitely be overselling the feature.
This was a known and advertised failure case with the new threads runtime, exacerbated by limitations in the implementation that cause certain blocking operations to block the current OS thread instead of blocking the virtual thread and allowing another virtual thread to be re-use the underlying OS thread.