I've tried using it myself for just simple tasks and was pretty unusable - lots of weird bugs and unintuitive behavior... Can't really imagine how painful it would be for a mid-to-large size gamedev team.
Another down-side is that it forces you into having secondary server components. You can't bare-host git-with-LFS over ssh with just some directories on disk—you'll need Github, Gitlab, Gitea, or whatever, with LFS support (or that one "alpha quality do not use!" Python[?] project on Github that's supposed to handle LFS)
I've tried using it myself for just simple tasks and was pretty unusable - lots of weird bugs and unintuitive behavior... Can't really imagine how painful it would be for a mid-to-large size gamedev team.