So, for nuclear district heating, you'd need higher quality heat, probably steam.
The roadblock is the immense expense of a massive, complicated, intricate machine requiring massive workforces of highly skilled construction labor.
Shifting from heat conversion to some sort of direct conversion, and in the process ideally eliminating a huge amount of the construction expense, is the way out.
As our economies become ever more advanced, skilled labor becomes ever more expensive. Our existing fleet of nuclear reactors is much like the intricate cathedrals of past centuries. We could build in that style, but the expense is much higher today than it was back when the cathedrals were first made.
It's a hell of a lot more than a steam boiler, even if ultimately that's the goal. The nuclear island is a hell of a beast of complexity, size, and quality.
Miles upon miles of pipes with high-performance welds meant to last decades is no way to build a cheap and cost-effective electrical generation system. We need something better.
Also, getting off a thermodynamic heat engine means the chance for far greater efficiency. Going through a heat cycle is hugely inefficient.
For example, just extending the lifetime of the Diablo Canyon reactor pair in California, for five years extra life from 2025 to 2030, is expected to cost a minimum of $8.3B. That's the utility's claim before the work has been done, and life all nuclear/construction projects, it will almost certainly balloon midway.
TL;DR nuclear needs a tech breakthrough like direct conversion.