There are absolutely things wrong with that, because React was designed to solve problems that don't exist in a TUI.

React fixes issues with the DOM being too slow to fully re-render the entire webpage every time a piece of state changes. That doesn't apply in a TUI, you can re-render TUIs faster than the monitor can refresh. There's no need to selectively re-render parts of the UI, you can just re-render the entire thing every time something changes without even stressing out the CPU.

It brings in a bunch of complexity that doesn't solve any real issues beyond the devs being more familiar with React than a TUI library.