UUIDv7 makes sense when a distributed system needs to insert vast amount of data that will be consumed chronologically. Typically an event log table.

Anything else, as you're rightly pointing it out, is a bit of a stretch.

The distributed part is what forces creating Ids outside of the server, where UUIDs become useful, and also where systems become reliable.

Last year I went to renew my Id and they told me, sorry, the (centralised) system is down, but before computers things were done in a more resilient local, offline authoring + sync when convenient way that didn't result in "Sorry, computer says no. Schedule a new appointment."