LiveData was never designed to be a full-fledged reactive stream. Thread management with LiveData is very hard and making data transformation with transformation operators is very limited. Moreover, testing LiveData becomes very tricky and is likely to open for race conditions if you are using it with coroutines.
Luckily, Kotlin Flow provides asynchronously computed values with the power of Coroutines. Making data transformations becomes very easy with Flow intermediate operators. Furthermore, StateFlow provides caching the current state just like LiveData. Since there is a back-pressure in Flow, unit testing is much simpler with handy Flow terminal operators.
Kotlin Flow is a very powerful reactive stream with its robust operators. Using Flow instead of LiveData makes it easier to handle data transformations and background processes. Finally, testing Flow is much safer and painless compared to LiveData.