I believe the singular reason is that TikTok is controlled by the CCP and they use it as a tool to further increase political and social division by manipulating the algorithm.

This is evidenced by the fact that ByteDance could've sold TikTok in the US for a huge amount of money to comply with the recent legislation, but the Chinese government won't allow the sale. They aren't interested in the money, which to me sounds like they only ever cared about the data and influence.

Side note: I used Perplexity to summarize the recent events to make sure I'm not totally talking out my butt :). Just a theory though, happy to be proven wrong!

Exactly, even when banned in the US, TikTok (though a lot less valuable business) can still be used to do influence outside the US.

If it was a business they would have sold it.