Think of Entities as things with a unique identity (like a User with an ID) and Value Objects as things defined by their properties (like an Address).
If you mistakenly make a Value Object an Entity, you introduce unnecessary complexity:
Example: If you model an Address as an Entity, every time a user updates their address, you either update the existing one (which could affect multiple users) or create a new one and handle identity tracking. If it were a Value Object, you’d simply replace the old address with a new one, avoiding unnecessary complexity.