When it comes to most “normie” use cases in Linux (and I am including the self hosting community here as well), people prefer working on well established and supported distributions such as Debian, Ubuntu, CentOS, Fedora, etc.
Generally, people would discourage the use of bleeding edge distributions like Arch, Gentoo, etc. as it might break something if the user doesn’t know what they’re doing. Yet, I have seen instances where this has been used by hobbyists and companies. (ChromeOS is a Gentoo corruption, and SteamOS is an arch derivative).
What about Linux from Scratch (LFS)? Under what circumstances would one want to build Linux from the ground up for production or commercial purposes?
I’d say maybe limited embedded devices, but that would make sense before Yocto came along.
LFS is and has been mostly educational.