There's a neat demo of this in action here: https://jaxry.github.io/wave-function-collapse/
Another, where you can set cells and then have it solve: https://oskarstalberg.com/game/wave/wave.html
And an itch.io game where you are the wave function selector: https://bolddunkley.itch.io/wfc-mixed
I thought this concept would have found more traction in the world of procgen (in games), because it's pretty neat. But I found it difficult to work with, so perhaps others also did!
Caves of Qud uses it in map generation: https://youtu.be/AdCgi9E90jw
Oskar Stalberg has used it a bit, notably with Townscaper.
https://www.townscapergame.com/