Cloudmining and hosted mining are really famous because you don’t need coder skillz to set up your miners. Setting up miners is simply done by someone else.

Cloudmining and hosted mining have High Operational and Service Costs. Providers charge fees not just for hardware, but also for maintenance, electricity, infrastructure, and profit margin. Such costs are often baked into long-term contracts, which are priced to ensure they profit — not you. You're still paying for machines, hosting space, electricity, cooling, and support. Such costs are often made up and can be higher what large-scale miners pay in bulk.

Mining Difficulty and Diminishing Returns are a big problem. Mining difficulty typically increases over time, which reduces rewards unless you're constantly upgrading hardware. Hosted or cloud mining contracts often lock in performance levels, meaning your hash rate remains constant while the network becomes more competitive.
Depreciation of Hardware is a big problem as well.  By hosted mining, you're usually responsible for buying your own equipment. ASIC miners become outdated quickly. If your miner becomes unprofitable, you still own the hardware, but it might be worth little to nothing.

Low Bitcoin Price Volatility Risk is due, if the price of Bitcoin drops significantly during your mining term, you might be mining at a loss, especially if your contract fees are fixed. You are still paying operational fees, regardless of whether your mining rewards cover such costs.

Lack of Transparency and Trust might affect your provider if no research was done beforehand. Many cloud mining companies have been scams (e.g., BitClub Network, BitConnect). Even legitimate providers may not be transparent about actual hardware uptime, efficiency, or how they calculate payouts.

You don’t have Control over operations.  By cloudmining, you don't control the hardware. If the company decides to shut down your contract (e.g., due to market conditions), you're stuck. Hosted mining gives you more control, but you're still reliant on a third party for physical access and management.

All in all we can say cloudmining and hosted mining is just not profitable because we have so many middlemen costs occurring. You will be charged to have operations funded by a maintainer who will always charge a cost to stay in profit for himself.