The first time I ran into it in 5e was when I ran Hidden Shrine of Tamoachan in AL. The lower levels of the Shrine are full of toxic air that deals damage every hour, pretty much preventing rest until you reach the safer areas. The party trivialized that with LTH and rested pretty much whenever, as the enemies really had nothing they could do about it (the one random encounter I thought would, some incorporeal undead, ran right into Crawford's "hemisphere" ruling, lol).
In one battle, the Wizard cast it, waited inside while the characters started a fight, then retreated around the corner, taking advantage of suddenly having an invincible fort they could dive into. This did take the Wizard out of the fight, but it was still pretty lame. I couldn't even have the enemies retreat due to Entangle, but that's neither here nor there.
Since then, while it annoys me, I only had one other problem with it as a DM when I was running a converted 2e adventure- the party decided to rest when I didn't really think they needed to and looking at the stuff that could bother them while they rested, I realized my hands were tied outside of pure DM fiat.
As a player, my party used a combo of it and Alarm while exploring a megadungeon last year. We had a few ambush attempts get foiled by the Alarm, and then, well, nobody had to leave the Tiny Hut until they were good and ready to do so.
Most of the time it isn't a problem per se, it's more that it could potentially be one. In a Tales of the Valiant game I'm in, the Bard's subclass lets him cast a Ritual 1/day as a bonus action. He hasn't used LTH with it yet, but when it happens, I'm kind of curious what the GM's reaction will be.