Downsides of target encoding compared to one hot encoding?

Hey guys, I'm still a DS student so sorry if this is a slightly dumb question

But I was wondering what the downsides of target encoding were? Not creating a ton of new features seems like a dream and seems to be improving my model's performance on a limited test dataset, and at least right now it kind of feels like a no brainer

So I'm guessing there's probably some really obvious downside I'm missing considering most people seem to …

datascience dataset encoding features hey hot new features performance question s performance test