E.g. if you have a remote job, you can just travel to a third country and work from there. Most countries just require that you get out for a few days per 3 or 6 months (which can be just visiting a nearby country, staying in a hotel, and returning) to renew your plain tourist visa.
In the end, nothing happened but ymmv. I also know a few people who did the same in HK and eventually got into trouble because of that.
I do think it works well but it's not a long term plan and if you do it, you must plan with potentially being denied entry eventually.
First, absolutely, the latter can happen at some point.
Second, however, I know tons of people that did it just fine with no issue for years.
YMMV
It worked out nicely; as an Irish citizen I still have the right to live and work in both the EU/EEA and the UK, which is handy.
I've also seen it combined with student visas, so one year on a student visa to learn the language (that costs more in most countries, although there are some countries with relatively cheap language courses and possibility to work for up to 20 hours a week, example Japan or France) then a working holiday visa and then finding a sponsor.