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The biggest problem with this approach is that it requires pulling the repository up to unknown depth. In a CI/CD pipeline you would generally pull only a shallow copy of the repository. Why slow down your jobs by downloading every commit since the beginning of time? Well, you rather have to with this strategy, or git describe might suddenly return something unexpected if the tag is more commits away than the clone depth.
The popular way of reporting version numbers is semver. Three numbers, MAJOR.MINOR.PATCH, denoting breaking changes, new backward compatible features, and backward compatible bugfixes, in that order. Unfortunately, this strategy is wrong in such a way it will never result in correct automated versioning systems. At least, not beyond the trivial increment counter.