You mean it doesn't work?
Agentic workflows that use the highest models and very high token burn do work to an extent. They'll typically produce code that does what was asked, especially when you're looking at tasks with a ton of training data like basic websites and CRUD operations. They do it by combining prompts with deterministic pathways(skills) and may ask the equivalent of hundreds or thousands of browser prompts to produce code.
In some cases, they're a good bit faster and cheaper than a real programmer. In other cases, they're slower and more expensive. Sometimes they'll make security conscious choices the amateur programmer would've missed. Sometimes they'll make huge glaring errors that could cost the deployer quite a lot of money. There've been quite a few instances of AI revealing API keys then people using them for compute and racking up tens of thousand dollar tabs.
They also typically produce unmaintainable code with no true owner. Without a person who knows how the code works, the only way to fix it is to hope AI can fix the mess it made. Reading through the volume of code a large agentic workflow produces in a way that allows you to troubleshoot it often takes longer than it would've taken to write it correctly in the first place.
Personally, I don't think businesses believe it's 'better than devs'. But, it doesn't have to be.
If it can do 80% as well and their security team (or Claude Mythos) can prevent any financially devastating outcomes, then it's a cost cutting measure. Sure, it results in enshittification for the user (see: Windows the last couple years), but companies have never had any qualms about cutting other portions of the budget at the expense of customer experience. AI code is yet another way to do that.
There's also a big difference in AI application methods. For every person using agentic workflows to make something that mostly works, there are 50 dipshits asking ChatGPT to write something for them in a browser window. Those always end up broken in 5 ways the author doesn't understand and will never be fully functional.
Anyway, I consider the term 'vibe coding' to be a marketing campaign because it was astroturfed everywhere by the usual suspects (businessinsider, social media bots, the wall of indian influencers). The goal was to get everyone talking about it by highlighting an accessible term that would spread quickly.