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.
It’s fine in the sense that it works, it’s just a really bad look for a company building a tool that’s supposed to write good code because it balloons the resources consumed up to an absurd level.
300MB of RAM for a CLI app that reads files and makes HTTP calls is crazy. A new emacs GUI instance is like 70MB and that’s for an entire text editor with a GUI.